CeFi
Counterparty Risk
The risk that the other party in a financial transaction will fail to meet their obligations. In CeFi lending, counterparty risk means the platform could become insolvent and you lose your deposited funds.
Why Counterparty Risk Matters
Understanding counterparty risk is essential for anyone participating in crypto lending or DeFi markets. This concept directly impacts how you evaluate platforms, manage risk, and optimize returns.
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