Definition ∞ A risk management system in the context of cryptocurrency protocols or platforms is a structured framework designed to identify, assess, monitor, and mitigate potential financial or operational risks. This system employs various tools, policies, and automated mechanisms to safeguard assets and maintain protocol stability. It is essential for protecting users and the integrity of the digital asset ecosystem.
Context ∞ Effective risk management systems are paramount for the long-term viability and security of decentralized finance protocols. News frequently reports on protocol upgrades that enhance these systems, particularly concerning liquidation mechanisms and oracle reliability. The continuous refinement of these systems is a critical aspect of building trustworthy digital financial infrastructure.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
