# Risk Awareness & Compliance

### Overview / why it matters

Crypto carries risk. Knowing the types helps you size positions and avoid avoidable losses. Compliance rules set the baseline for safer participation.

### Core concepts

* Market risk: Prices can swing a lot.
* Liquidity risk: You may be unable to sell quickly.
* Smart-contract risk: Code bugs or exploits.
* Custody risk: Key loss or theft.
* Regulatory risk: Rule changes affect access or features.
* KYC/AML: Identity checks to reduce fraud and abuse.
* Geo-blocking: Region limits based on local rules.

### Key takeaways

* Only use funds you can afford to lock up or lose.
* Use audited contracts and official links.
* KYC/AML and MiCA disclosures protect the broader community.


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