From c459f34fc91f7702a0e12552986fa83e66f71347 Mon Sep 17 00:00:00 2001 From: sdiehl Date: Sun, 27 Mar 2022 11:36:08 +0100 Subject: [PATCH] Risk analysis topics --- concepts/artificial-demand.md | 2 ++ concepts/bank-run.md | 5 +++++ concepts/counterparty-risk.md | 1 + concepts/inevitablism.md | 3 +-- concepts/platform-risk.md | 9 +++++++++ concepts/risk.md | 5 +++++ guide/index.md | 2 +- meta/concepts-todo.md | 16 +++++++--------- 8 files changed, 31 insertions(+), 12 deletions(-) create mode 100644 concepts/risk.md diff --git a/concepts/artificial-demand.md b/concepts/artificial-demand.md index 13cd319..703497d 100644 --- a/concepts/artificial-demand.md +++ b/concepts/artificial-demand.md @@ -1,2 +1,4 @@ # Artificial Demand +The property of a [asset](asset) whereby the demand curve for the asset is not generated by market forces but instead by an artificial source external which requires the purchase of the asset as a proxy for another good or services, or as part of an [enclosure](enclosure.md). + See [enclosure](enclosure.md) and [artificial-scarcity](artificial-scarcity.md). \ No newline at end of file diff --git a/concepts/bank-run.md b/concepts/bank-run.md index 4bcec41..2e169e9 100644 --- a/concepts/bank-run.md +++ b/concepts/bank-run.md @@ -1 +1,6 @@ # Bank Run +In financial regulation, a bank run is the sudden withdrawal of [deposits](deposit.md) from a [bank](bank.md), which may result in the bank becoming insolvent. + +Bank runs where a common occurrence in United States in the market crash of 1929 and during the 1930s. Regulation and federal policy [deposit insurance](deposit-insurance.md) entirely eliminated this phenomenon in subsequent decades. + +## References \ No newline at end of file diff --git a/concepts/counterparty-risk.md b/concepts/counterparty-risk.md index 907556f..b83294c 100644 --- a/concepts/counterparty-risk.md +++ b/concepts/counterparty-risk.md @@ -1,3 +1,4 @@ # Counterparty Risk +In financial risk analysis, *counterparty risk* is the probability that the one party to an a legal contract, investment, transaction, or credit agreement will not fulfil the terms of the deal and may default on the contractual obligations. ## References diff --git a/concepts/inevitablism.md b/concepts/inevitablism.md index 8415451..4990127 100644 --- a/concepts/inevitablism.md +++ b/concepts/inevitablism.md @@ -1,6 +1,5 @@ # Crypto-inevitablism - -The prefiguragative political ideology which is centered around a core faith that [crypto asset](cryptoasset.md) and their associated technologies have some pre-ordained to destiny on the scale of human history detached from their efficacy for one use case or problem to solve. It is the pre-supposition that crypto assets are simply *inevitable* and must be brought into existence to fulfil a, perhaps unspecified, destiny. +The prefiguragative political ideology which is centred around a core faith that [crypto assets](cryptoasset.md) and their associated technologies and culture have some pre-ordained to destiny on the scale of human history detached from their efficacy for one use case or problem to solve. It is the presupposition that crypto assets are simply *inevitable* and must be brought into existence to fulfil a, perhaps unspecified, destiny. ## References * Hussain, Syed Omer. 2020. ‘Prefigurative Post-Politics as Strategy: The Case of Government-Led Blockchain Projects’. The Journal of The British Blockchain Association 3 (1): 1–11. https://doi.org/10.31585/jbba-3-1-(2)2020. diff --git a/concepts/platform-risk.md b/concepts/platform-risk.md index 5566fff..b11c633 100644 --- a/concepts/platform-risk.md +++ b/concepts/platform-risk.md @@ -1 +1,10 @@ # Platform Risk +In financial risk analysis, *platform risk* is the risk that the [market maker](market-maker.md) or trading platform ceases to operate as a company. In this event the customers of the platform may be left without the ability to realize their [paper wealth](paper-wealth.md) or withdraw funds that are tied up in the defunct company without a liquidation path. + +Unregulated [crypto exchanges](crypto-exchange.md) are subject to extreme [platform risk](platform-risk.md). + +## References +1. Doctorow, C. (2022, February 3). Pluralistic: 03 Feb 2022 – Pluralistic: Daily links from Cory Doctorow. https://pluralistic.net/2022/02/03/liquidation-preference/ +1. Cumming, Douglas J., Sofia Johan, and Anshum Pant. 2019. ‘Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty’. Journal of Risk and Financial Management 12 (3): 126. https://doi.org/10.3390/jrfm12030126. +1. Ferrari, Valeria. 2020. ‘The Regulation of Crypto-Assets in the EU – Investment and Payment Tokens under the Radar’. Maastricht Journal of European and Comparative Law 27 (3): 325–42. https://doi.org/10.1177/1023263X20911538. +1. Finck, Michèle. 2018. Blockchain Regulation and Governance in Europe. Blockchain Regulation and Governance in Europe. Cambridge University Press. https://doi.org/10.1017/9781108609708. \ No newline at end of file diff --git a/concepts/risk.md b/concepts/risk.md new file mode 100644 index 0000000..1230d52 --- /dev/null +++ b/concepts/risk.md @@ -0,0 +1,5 @@ +# Risk +1. [Counterparty risk](counterparty-risk.md) +2. [Platform risk](platform-risk.md) +3. [Price risk](price-risk.md) +4. [Systemic risk](systemic-risk.md) \ No newline at end of file diff --git a/guide/index.md b/guide/index.md index 2b7fdf1..b87dc25 100644 --- a/guide/index.md +++ b/guide/index.md @@ -123,7 +123,7 @@ Explore crypto and "web3" in terms of different perspectives on politics and eco * [Market Fundamentalism](../concepts/market-fundamentalism.md) * [Financial Nihilism](../concepts/financial-nihilism.md) * [Austrian Economics](../concepts/austrian-economics.md) -* [Post State Technocracy](../concepts/post-state-technocracy.md) +* [Post-state Technocracy](../concepts/post-state-technocracy.md) * [Libertarianism](../concepts/libertarianism.md) * [Technolibertarianism](../concepts/technolibertarianism.md) * [Cryptoanarchism](../concepts/cryptoanarchism.md) diff --git a/meta/concepts-todo.md b/meta/concepts-todo.md index 9f2fab3..343a550 100644 --- a/meta/concepts-todo.md +++ b/meta/concepts-todo.md @@ -40,7 +40,7 @@ Second Pass - [x] [broker](../concepts/broker.md) - [x] [cd](../concepts/cd.md) - [x] [commodity](../concepts/commodity.md) -- [ ] [counterparty-risk](../concepts/counterparty-risk.md) +- [x] [counterparty-risk](../concepts/counterparty-risk.md) - [ ] [cross-bridges](../concepts/cross-bridges.md) - [x] [deposit](../concepts/deposit.md) - [x] [deposit-insurance](../concepts/deposit-insurance.md) @@ -55,8 +55,8 @@ Second Pass - [x] [mutualization](../concepts/mutualization.md) - [x] [narrative-economics](../concepts/narrative-economics.md) - [x] [order-book](../concepts/order-book.md) -- [ ] [platform-risk](../concepts/platform-risk.md) -- [ ] [capital-formation](../concepts/capital-formation.md) +- [x] [platform-risk](../concepts/platform-risk.md) +- [x] [capital-formation](../concepts/capital-formation.md) - [x] [private-key](../concepts/private-key.md) - [x] [pyramid-scheme](../concepts/pyramid-scheme.md) - [x] [mlm](../concepts/mlm.md) @@ -77,20 +77,18 @@ Second Pass Third pass -- [ ] [artificial-demand](../concepts/artificial-demand.md) -- [ ] [atomic-swap](../concepts/atomic-swap.md) -- [ ] [bank-run](../concepts/bank-run.md) +- [x] [artificial-demand](../concepts/artificial-demand.md) +- [x] [bank-run](../concepts/bank-run.md) - [x] [broker](../concepts/broker.md) -- [x] [capital-formation](../concepts/capital-formation.md)![](../concepts/WeCrashed.S01E02.480p.x264-mSD[eztv.re].mkv) - [x] [cds](../concepts/cds.md) - [ ] [enclosure](../concepts/enclosure.md) - [ ] [ficticious-commodity](../concepts/ficticious-commodity.md) -- [ ] [market-mania](../concepts/market-mania.md) +- [x] [market-mania](../concepts/market-mania.md) - [ ] [price-risk](../concepts/price-risk.md) - [ ] [sanctions-enforcement](../concepts/sanctions-enforcement.md) - [ ] [survivorship-bias](../concepts/survivorship-bias.md) - [x] [bucket-shop](../concepts/bucket-shop.md) -- [ ] [front-running](../concepts/front-running.md) +- [x] [front-running](../concepts/front-running.md) Ideologies