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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