Default Risk
The risk that a party will not meet its contractual obligations.
The risk that a party will not meet its contractual obligations.
Default risk is the risk that a party will not meet its contractual obligations under a loan or other financial contract. In the context of DeFi, default risk could refer to the risk that a borrower will not repay their crypto loan.
A borrower failing to repay a loan on a DeFi platform.
