What it means
Custody risk can include platform failure, account restrictions, withdrawal pauses or security incidents.
Why it matters
Users can compare custodial and self-custody options before deciding.
Common mistake
Do not treat Custody Risk as a universal rule. Exchanges, wallets and card apps may use the same term differently, especially around limits, fees, networks and account restrictions.
User action
Before relying on this term, check the provider's official help page, fee schedule or product terms. If funds are involved, test with a small amount first and keep a record of the transaction or setting.
Related pages
Continue with Self-custody or return to the crypto glossary.
How to use this term
Use custody risk to decide how much you are comfortable leaving on an exchange or card app.
What to check
Check account controls, withdrawal options, platform history, proof-of-reserves signals and whether self-custody is better for long-term storage.