Definition ∞ Project risk assessment involves systematically identifying, analyzing, and evaluating potential risks associated with the development, deployment, or operation of a digital asset project or blockchain protocol. This process considers technical vulnerabilities, market volatility, regulatory changes, and team execution capabilities. Its purpose is to quantify potential impacts and devise mitigation strategies.
Context ∞ In the rapidly evolving digital asset space, project risk assessment is a continuous and vital process, particularly for investors and users evaluating new decentralized applications or token launches. The transparency of risk disclosures and the robustness of mitigation plans are increasingly scrutinized by the community and potential stakeholders.