Credit Default Risk: MFIC's primary business involves extending credit, and borrowers may default on their obligations or experience a deterioration in their financial health, leading to principal losses and reduced interest income.

Interest Rate Volatility Risk: Fluctuations in interest rates can negatively impact MFIC's net interest margin if the rates on its borrowings increase faster than the rates on its assets, or if a significant portion of its assets are fixed-rate while its liabilities are variable.

Illiquid Investments Risk: Many of MFIC's debt investments are illiquid and not actively traded, making them difficult to value accurately and challenging to sell quickly at favorable prices, potentially leading to significant losses if MFIC needs to liquidate assets.