Self-Custody

Custodial Wallet Risks

Definition

Custodial Wallet Risks is an important aspect of modern crypto wallet technology. Exchange hacks, insolvency, asset freezes, and loss of access - why centralized custody creates counterparty risk.

Why It Matters

Self-custody means you control your own private keys - and therefore your own assets. The collapse of centralized exchanges and custodians has proven that 'not your keys, not your coins' is not just a slogan but a critical security principle.

How JIL Sovereign Addresses This

JIL Wallet implements custodial wallet risks through MPC key sharding. Exchange hacks, insolvency, asset freezes, and loss of access - why centralized custody creates counterparty risk. Users hold one of three key shards, giving them independent signing authority. No single party - not even JIL - can move assets without user participation.

Frequently Asked Questions

What is custodial wallet risks?

Exchange hacks, insolvency, asset freezes, and loss of access - why centralized custody creates counterparty risk.

How does JIL Wallet handle custodial wallet risks?

JIL Wallet implements custodial wallet risks through MPC key sharding. Exchange hacks, insolvency, asset freezes, and loss of access - why centralized custody creates counterparty risk. Users hold one of three key shards, giving them independent sign