Digital Asset Custody Risk Interview Guide
Digital asset custody risk interview guide for custody meaning, venue balances, transfers, operational controls, counterparty risk, and caveats.
Candidates discussing operational and counterparty risk in digital-asset trading systems.
Custody is operational risk
Digital-asset custody questions concern where assets are held, who can move them, how transfers are controlled, and what happens when a venue or process fails.
Venue balances create exposure
Keeping inventory on exchanges can support fast trading but creates venue and operational exposure. Keeping assets elsewhere can create transfer timing risk.
Concrete example
A cross-exchange strategy may need balances on multiple venues. If one venue disables withdrawals or trading, both execution and risk management can change.
Controls are process-based
Generic controls include limits, approvals, reconciliation, monitoring, segregation of duties, and incident procedures. Avoid giving legal or custody advice.
Common mistakes
Candidates often ignore custody because it is not a pricing formula. In digital assets, operational asset control can be central to trading risk.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.