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Settlement Risk
Settlement risk is the risk that one side of a transaction fails to deliver the asset or payment required to complete the trade. It can arise during the period between agreeing a transaction and completing settlement.
Why it matters to you
Reducing settlement risk is one of the areas where blockchain based financial infrastructure can potentially improve traditional processes. Structures such as atomic settlement can link payment and asset delivery, reducing the risk that one side completes while the other does not.
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