Definition ∞ A Contingency Policy outlines predetermined actions or rules designed to be activated under specific adverse conditions within a digital asset system. This policy serves as a safeguard to mitigate risks and maintain operational stability during unexpected events. It defines fallback procedures or automatic responses to protect funds or protocol integrity. Such policies are vital for ensuring resilience in volatile or uncertain environments.
Context ∞ News concerning market instability, smart contract exploits, or protocol failures frequently highlights the absence or effectiveness of Contingency Policies. The implementation of robust contingency plans is a key factor in assessing the security and reliability of decentralized applications and digital asset platforms. Debates often focus on the degree of decentralization maintained during crisis responses and the transparency of policy activation. Ongoing development seeks to automate these policies through smart contracts, reducing human intervention during critical events.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
