Definition ∞ Confidential terms are specific conditions or details within an agreement that parties agree to keep private and not disclose to external entities. These provisions restrict the sharing of sensitive information, such as pricing, proprietary data, or strategic arrangements. In digital agreements, cryptographic methods can sometimes secure these terms.
Context ∞ In the digital asset space, confidential terms often appear in over-the-counter trades, institutional partnerships, or early-stage funding rounds for blockchain projects. The necessity for such secrecy arises from competitive advantages, regulatory considerations, or the desire to avoid market speculation. The challenge lies in balancing confidentiality with the transparency principles often associated with blockchain technology.
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