My favorite part of reading S-1 IPO filings is always the risk factors. They are seemingly endless, as the company tries to cover its ass for all the things that might conceivably go wrong. But they are often very insightful in pointing to the real issues facing the company.

To save you reading it all, here is a highly selective summary of just a few of the interesting risk factors Facebook points to in its IPO filing:

If we fail to retain existing users or add new users, or if our users decrease their level of engagement with Facebook, our revenue, financial results, and business may be significantly harmed.
…
Any number of factors could potentially negatively affect user retention, growth, and engagement, including if:

* we are unable to successfully balance our efforts to provide a compelling user experience with the decisions we make with respect to the frequency, prominence, and size of ads and other commercial content that we display;
* there are changes in user sentiment about the quality or usefulness of our products or concerns related to privacy and sharing, safety, security, or other factors;
* we are unable to manage and prioritize information to ensure users are presented with content that is interesting, useful, and relevant to them;
* we adopt policies or procedures related to areas such as sharing or user data that are perceived negatively by our users or the general public;
etc.
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