Knowledge Hub
Liquidity Risk
You may not always be able to buy, sell or withdraw digital assets quickly at the price you expect.
Liquidity depends on the availability of buyers and sellers, trading volume and market depth. During volatile or stressed conditions, liquidity can deteriorate rapidly.
Technical outages, temporary trading restrictions, market shocks or regulatory events can also affect execution. Less widely traded tokens generally carry greater liquidity risk and large orders can move market prices significantly.
Key points to remember
Execution may not be immediate in stressed markets.
Liquidity can disappear during periods of severe volatility.
Trading venues may temporarily restrict activity in exceptional circumstances.
Consider market depth before placing large transactions.