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What is counterparty risk?
What is counterparty risk?
Kagen Atkinson avatar
Written by Kagen Atkinson
Updated over a week ago

At the most basic level of a business agreement that involves a loan of funds between two parties, counterparty risk is an assessment of how likely or unlikely it is for you to get paid back. Put more simply, when thinking about counterparty risk, you are saying to yourself… will I get paid back all the funds that I loaned out?

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