A liability is something a person or company owes or is legally responsible for paying to someone else. . It usually requires that the person has to sacrifice a part of their profit or earnings.
Liability is generally understood as debt however it can be something that costs you more than your initial investment or has poor return on investment/profit.

Example:
For example, Sapna bought a house by taking money from a money lender and due to loss of job she wasn’t able to repay the loan amount. This loan becomes a liability for Sapna.