Definition ∞ A structural assumption is a foundational premise or condition upon which a financial model, protocol, or system is built. In the context of digital assets, these assumptions relate to fundamental properties of blockchain technology, market behavior, or economic incentives that are considered true for the system to function as intended. Examples include the security of underlying cryptographic primitives, the rationality of market participants, or the stability of oracle data feeds. If a structural assumption proves false, it can lead to significant vulnerabilities, protocol failures, or unexpected market outcomes.
Context ∞ Structural assumptions are continuously scrutinized in the digital asset space, especially as new protocols are developed and existing ones are tested by real-world conditions. News often reports on instances where a previously held assumption about market dynamics or protocol security was challenged, leading to significant events. Research and audits frequently aim to validate or disprove these underlying premises to enhance the robustness and reliability of decentralized systems.