The possibility that an issuer or borrower fails to make promised payments in full and on time.
Credit risk is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Credit risk belongs to the documented history and social layer around Bitcoin. Primary records can establish what was published, built or decided; motives, influence and later interpretation should remain separate from those verifiable facts.
Understanding Credit risk helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with Preferred stock, Convertible note, Counterparty risk, Refinancing risk. The reverse links also lead from Preferred stock, Digital credit, Dividend, Refinancing risk.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph