Risk report
It is important to understand potential risks associated with crypto. This report seeks to disclose all known risks and mitigation efforts.
High risk:
User error
There is a high level of risk associated with user error due to:
- Potentially losing or exposing your crypto recovery phrase.
- Potentially making an error when transferring crypto tokens.
- Crypto transactions being irreversible.
Risk: User error resulting in a permanent loss of funds.
Mitigation: Double-check all actions before completing them. Seek professional advice. Research crypto best practices. Perform test transactions.
Market volatility
Risk: Token price decreasing in value.
Mitigation: Don't hold more crypto tokens than you can afford to lose.
Medium risk:
Third-party applications
Risk: A third-party application causing a permanent loss of funds.
Mitigation: Keep software updated. Use trusted third-party applications.
Ongoing issuing authority
Some digital assets require an ongoing issuing authority, meaning that the asset issuer can issue additional tokens or make clawback transactions. Indicated by "Account lock status: Unlocked".
Risk: Asset issuer user error, or asset issuer third-party application, causing a permanent loss of funds.
Mitigation: Use trusted tokenization services. Revoke issuing authority if no additional issuances or clawbacks are required.
Low risk:
Network error
Risk: Crypto network error resulting in a permanent loss of funds.
Mitigation: Utilize multiple crypto networks.