The risk that one side delivers cash or assets while the corresponding leg fails or arrives late.
Settlement 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.
Settlement risk describes how participants value, trade or obtain exposure to bitcoin. Market behavior can affect adoption and mining economics, but it does not rewrite consensus rules. Price evidence and protocol evidence answer different questions.
Understanding Settlement 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 Counterparty risk, Institutional OTC desk, Crypto prime brokerage, Delivery versus payment, Probabilistic settlement finality. The reverse links also lead from Institutional OTC desk, Counterparty risk, Delivery versus payment, Probabilistic settlement finality.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph