Definition ∞ Structural risk refers to inherent vulnerabilities or weaknesses within the fundamental design, architecture, or operational framework of a system or market. These risks are not merely transient market fluctuations but are deeply embedded issues that could lead to systemic failures or significant disruptions. In digital asset markets, structural risks might stem from protocol design, regulatory gaps, or concentrated power structures. They pose a long-term threat.
Context ∞ Discussions about structural risk in the cryptocurrency space often relate to the underlying security of blockchain protocols, the centralization of certain ecosystem components, or regulatory ambiguities that could cause instability. News frequently covers concerns about smart contract vulnerabilities, oracle dependence, or potential attacks on consensus mechanisms as forms of structural risk. Addressing these fundamental issues is critical for the long-term viability and trustworthiness of digital assets.
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