Counterparty risk
Coverage of Counterparty risk in the Nexus archive.
- Anchorage rolls out platform to reduce crypto trading counterparty risk
Anchorage has launched a CMS platform enabling institutions to trade on crypto venues while maintaining assets in regulated custody, thereby reducing reliance on pre-funded accounts.
- I chose Bitcoin as a big chunk of my portfolio because of a often overlooked risk
An Austrian investor explains their decision to allocate a significant portion of their portfolio to Bitcoin due to regulatory limitations on broker insurance coverage in Austria, which only guarantees 20,000 euros regardless of portfolio size. They argue that holding Bitcoin directly eliminates counterparty risk associated with brokers, making it a safer alternative to traditional stocks and ETFs that must be held through intermediaries.
- What risk do you think people still underprice the most in DeFi right now?
A DeFi investor discusses underpriced risks in decentralized finance, particularly liquidity and exit risk that can significantly worsen actual returns compared to advertised APY. The post invites community discussion on various risks including smart contract, oracle, governance, counterparty, and liquidity risks that may be mispriced by the market.