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Withdrawal Limit

Definition

A withdrawal limit is a maximum amount of digital assets that can be removed from a platform or protocol within a specified timeframe. These limits are implemented by exchanges, lending platforms, or staking protocols for various reasons, including security, liquidity management, or regulatory compliance. They serve to mitigate risks associated with large-scale outflows, potential exploits, or market manipulation. Users typically encounter these restrictions when attempting to move funds from a centralized or decentralized service.