What is Custody Risk?
In this glossary, Custody Risk refers to: The risk of loss, theft, or misappropriation of crypto assets held by a custodian or self-custody provider, including operational, cyber, and legal exposures unique to digital asset management.
How is Custody Risk used in finance?
In finance communication, this term appears in contexts such as: "Portfolio disclosure must address custody risk, including protocols for third-party, multi-signature, and cold storage solutions."
Why does Custody Risk matter in finance?
Custody Risk matters because it supports clear communication in Cryptography contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Who uses Custody Risk?
Custody Risk is mainly used by Financial Analysts, Bankers, and Traders.
What category does Custody Risk belong to?
In this glossary, Custody Risk is grouped under Cryptography. Related pages in this category explain adjacent procedures, commands and operational concepts.
Where does this definition come from?
This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.