A crypto position can depend on a token, a wallet, a protocol and an intermediary at the same time. Mapping those dependencies is a clearer starting point than relying on a single risk score.
Follow the evidence
Trace how the event could reach markets, then inspect a competing explanation.
Compare explanations
Switch lenses to see what each account explains—and what remains uncertain.
Define exposure caps, approved venues, withdrawal permissions, key recovery and response steps for compromised credentials. Use independent checks for addresses and high-impact transfers where practical. Liquidity can change quickly, and a quoted price may not be available for the size or route you need. Stress test slippage, network congestion, fees and exit restrictions instead of assuming a trade can always be reversed.
Define exposure caps, approved venues, withdrawal permissions, key recovery and response steps for compromised credentials. Use independent checks for addresses and high-impact transfers where practical. Liquidity can change quickly, and a quoted price may not be available for the size or route you need. Stress test slippage, network congestion, fees and exit restrictions instead of assuming a trade can always be reversed.
Check the legal entity, custody terms, audit scope, incident history and current regulatory status in the jurisdiction that matters. Read primary documents and distinguish independent assurance from a vendor’s own summary. Losses, outages and protocol changes are possible even when controls are in place. Risk management reduces exposure to known failure modes; it cannot eliminate the possibility of loss.
The token is only one part of the exposure
A holder may rely on a private key, wallet software, network rules, an exchange or a smart contract. Each layer can fail in a different way, from lost credentials to a contract defect or a service that pauses withdrawals.
A displayed balance is not proof that assets are immediately available or legally protected. Understand who controls the keys, what rights attach to the asset and whether a custodian can lend, freeze or rehypothecate it.
Separate market limits from operational safeguards
Define exposure caps, approved venues, withdrawal permissions, key recovery and response steps for compromised credentials. Use independent checks for addresses and high-impact transfers where practical.
Liquidity can change quickly, and a quoted price may not be available for the size or route you need. Stress test slippage, network congestion, fees and exit restrictions instead of assuming a trade can always be reversed.
Verify who stands behind each service
Check the legal entity, custody terms, audit scope, incident history and current regulatory status in the jurisdiction that matters. Read primary documents and distinguish independent assurance from a vendor’s own summary.
Losses, outages and protocol changes are possible even when controls are in place. Risk management reduces exposure to known failure modes; it cannot eliminate the possibility of loss.