Glossary
Counterparty risk
The risk that a venue, custodian or lender holding your assets fails or cannot return them.
In digital assets this is the dominant operational risk for most treasuries, and it is concentrated: balances sit on a small number of venues, often for liquidity reasons, and those balances are usually unsecured claims.
Managing it is mostly policy: exposure limits per venue, a whitelist with periodic review, off-exchange settlement where available, and a documented view on what evidence of solvency you actually accept.
Where this comes up
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