Kamino Docs
Risk
Risk
  • Kamino Lend
  • Risk Dashboard
  • Oracles
    • LST Oracles
  • Risk Assessment Framework
  • Liquidity Risk
    • Introduction
    • Interest Rates
  • Insolvency Risk
    • Introduction
    • Asset Risk Framework
      • Oracle Pricing
      • Smart Contract Risk
      • Depeg Risk
      • Counterparty Risk
    • Market Risk
      • Token Volatility
      • Token Liquidity
      • Trading Volumes
      • Price Impact Analysis
      • Price Resilience Analysis
      • Market Capitalization
      • Relation to Other Tokens
  • Protocol Mechanisms
    • Automated Deleverage
    • Daily Caps
    • E-Mode Caps
  • Insurance Fund
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  1. Insolvency Risk
  2. Asset Risk Framework

Counterparty Risk

Counterparty risk qualitatively evaluates the governance of an asset, focusing on the degree of decentralization and control mechanisms.

The risk is gauged based on the level of centralization, which in turn is determined by the number of parties controlling the token's protocol, the number of holders, and the trust placed in the governing entity, project, or community.

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