Risk

Concentration Risk

Concentration risk arises when too much of an investment, portfolio or financial structure depends on a small number of assets, borrowers, issuers,...

Counterparty

A counterparty is another person or organization involved in a financial transaction, contract or agreement. Depending on the investment, counterpa...

Counterparty Risk

Counterparty risk is the risk that another person or organization involved in a financial agreement fails to meet its obligations. A counterparty c...

Credit Risk

Credit risk is the risk that a borrower or other party responsible for making financial payments fails to meet its obligations in full or on time....

Currency Risk

Currency risk is the risk that changes in exchange rates affect the value or returns of an investment when measured in the investor's own currency....

Custody Risk

Custody risk is the risk of loss, restricted access or other problems arising from how assets are safeguarded or controlled. It can affect traditio...

Cybersecurity Risk

Cybersecurity risk is the risk of loss, disruption or unauthorized access resulting from attacks or security failures affecting digital systems. Th...

Default Risk

Default risk is the risk that a borrower or issuer fails to make required payments or otherwise meet the financial obligations of a debt agreement....

Diversification

Diversification is the practice of spreading investments across different assets, issuers, borrowers, sectors, regions or other sources of risk rat...

Interest Rate Risk

Interest rate risk is the risk that changes in market interest rates affect the value or attractiveness of an investment. It is particularly import...

Issuer Risk

Issuer risk is the risk associated with the entity responsible for issuing a financial instrument or token. Problems may arise if the issuer become...

Legal Risk

Legal risk is the risk that an investment, contract, ownership arrangement or financial structure does not operate legally in the way participants...

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 longe...

Market Risk

Market risk is the risk of investment losses caused by changes in market prices or broader market conditions. Interest rates, equity prices, commod...

Operational Risk

Operational risk is the risk of loss or disruption caused by failures in processes, people, systems or external operational arrangements. Examples...

Oracle Risk

Oracle risk is the risk that external information supplied to a blockchain application is incorrect, delayed, manipulated or unavailable. Smart con...

Platform Risk

Platform risk is the risk associated with relying on a particular platform to access, trade, manage or redeem an investment. Problems can include o...

Recovery Rate

Recovery rate is the proportion of money that creditors ultimately recover after a borrower defaults. The amount recovered can depend on collateral...

Redemption Risk

Redemption risk is the risk that an investor cannot redeem an investment for its expected value, at the expected time or under the expected conditi...

Regulatory Risk

Regulatory risk is the risk that laws, regulations, regulatory interpretations or enforcement actions affect an investment, business or market. The...

Smart Contract Risk

Smart contract risk is the risk that software used to operate a blockchain based application contains errors, vulnerabilities or behaves in an unin...

Technology Risk

Technology risk is the risk that technological systems fail, become unavailable, are compromised or do not operate as intended. For RWAs, this can...

Valuation Risk

Valuation risk is the risk that an asset's reported or estimated value does not accurately reflect the price that could realistically be obtained f...