Having it snap under load and take off my appendages. This cable is old, I've got a new steel one to spool on sometime before winter.
Like the Hilift you have to respect your winch.
Remember they use cable for everything it is pretty strong, but for sure take as many precautions as you can. If you are winching something super heavy put some weight on the cable like blankets, jackets etc. If it is fraying replace it like it sounds like you are doing. I am afraid of the winch too, but not enough to have one, but enough to be as safe as I can. Don't let people stand around.
Real story. When I was just a mere pup, my friend got his blazer stuck in some ruts we had to winch diagonally, and we actually ran out of battery using the winch so we put two more batteries in from other rigs and we were all standing around watching when we heard this noise busting through the small trees. I mean it was so fast we heard the noise before we knew what actually happened. But right next to where we were standing a side pinch roller from the fairlead shot off at top speed and busted through a cluster of trees passed us. Nobody got hurt thank goodness, but it woke us up to how dangerous this stuff really is. That is when every single one of us put switches in the cab for working the winch, and I have done that ever since. It may not stop a snapped winch cable, but it would take some wierd miracle to send a pinch roller though the windshield.
We all still use winches, we just keep them maintenanced and try and think of the dangers before they happen. So far we have been lucky.
Some people say they put their hoods up. That could be a good idea if you can see, but I don't believe that is a good idea if you end up sticking your head out the window to see.
Most of the time though, when I winch it is to drag someone out of a swampy hole or to roll it back over onto its wheels. So I have never encountered another time where such a big vehicle has been as stuck.
Keep an eye on your cable and if it is questionable replace it. use your winch every couple of months even if it is just to move your jeep a few feet. pull the cable out quite a ways an walk it back in so it strings nice.
It is good to be afraid of it but not so much you don't use it.