Ep. 409 - Risk Management with Neil Zumwalde of Credmark
CRYPTO 101
00:00
What Is Liquidity Risk?
We measure that with something called value at risk, which is we look back at the last 365 days, break it into ten days chunks. And then say, what was the worst ten day chunk of the past year? And we say that, then we say, what's the worst one % chance of that thing happening again? And that's our value at risk score. We've seen plenty of themai seems like ha, one percent days are just trick and normal exactly ime. Supposedly, they happen three point six times a year. You know. It's not like this doesn't ever happen. So we need to look at what the sort of t down stream effects are
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