All terms RiskStart here

Liquidity Risk

Liquidity risk is the risk that an investor cannot buy or sell an asset when desired without accepting a significantly worse price or waiting longer than expected. It is particularly relevant to assets with limited trading activity or few potential buyers.

Why it matters to you

Tokenization can make an asset technically transferable without creating a liquid market for it. A token may trade 24/7 and still be difficult to sell in meaningful size. Tradable does not mean liquid.

Terms that sit next to this one

Liquidity
Secondary Market
Market Depth
Slippage
Redemption Risk

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