← Glossary · Crypto & Finance
Counterparty Risk
The risk that the other party to a financial transaction fails to meet their obligation.
In crypto, counterparty risk covers exchanges, custodians, stablecoin issuers, and market makers. Reserve attestation gaps, sudden withdrawal freezes, or regulatory action can turn a working relationship into an unrecoverable loss overnight.
See how Scarlet Risk covers Counterparty Risk.
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