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On-Chain Finance

Key Loss and Custody Risk

German: Schlüsselverlust- und Verwahrrisiko

The risk of permanent loss of access to assets through lost, destroyed or compromised keys, for which no legal recovery procedure comparable to a lost certificate exists.

Why people look this up

Readers building operational controls and asking what insurance and custody arrangements actually cover.

Auf Deutsch

Schlüsselverlust- und Verwahrrisiko Das Risiko des dauerhaften Zugriffsverlusts durch verlorene, zerstörte oder kompromittierte Schlüssel, für das kein Wiederherstellungsverfahren wie bei einer abhandengekommenen Urkunde besteht.

Looking for how this maps to its traditional-finance counterpart rather than a standalone definition? See the Term Bridge, which also flags where the obvious analogy is wrong.