Academy · Lesson 10
Custody and counterparty risk
Compare self-custody, custodial accounts, operational controls, and service failure risk.
All lessons7 minutes · Risk awareness
Different controls, different risks
Self-custody removes reliance on a custodian for transaction approval but places key security and recovery on the holder. Custodial services can offer recovery and controls while introducing counterparty, access, and withdrawal risk.
Reduce concentration
No custody model is risk-free. Use only services you understand, enable available security controls, retain records, and avoid keeping more value in an account than its purpose requires.
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