You will be fine as long as you are getting to 6-7% and still taking in the min required calories for your body. The body is designed to metabolise fat when you don't eat (it's basically an energy reserve of last resort). The first thing the body mtabolises is simple sugar.
the reason to exercise along with dieting is to maintain muscle. If you aren't eating enough and already have low body fat there is a threshold where your body won't just metabolise fat for it's energy needs, but it will also metabolise muscle. You def don't want that to happen.
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