Recovery Arrangements

Definition ∞ Recovery Arrangements are predefined plans and procedures designed to restore operational capabilities and data access following a system failure, cyberattack, or other disruptive event. In the context of digital assets, these arrangements are crucial for exchanges, custodians, and decentralized protocols to protect user funds and maintain service continuity. They aim to minimize downtime and financial loss.
Context ∞ The discussion surrounding recovery arrangements in the digital asset space emphasizes the need for robust disaster recovery and business continuity plans due to the immutable nature of blockchain transactions and the potential for irreversible losses. Its situation involves developing specialized strategies for cryptographic key recovery and securing decentralized infrastructure. Critical future developments include standardized industry practices for incident recovery and enhanced security audits of these arrangements.