A Tokenized Risk Assessment (“TRA”) is a standardized framework designed to evaluate and quantify the full spectrum of risks associated with the tokenization process for off-chain assets. Cicada utilizes a scorecard methodology, providing a structured and transparent approach to risk assessment, helping users understand the relative safety or exposure of tokenized off-chain assets and their underlying legal structures. Tokenized Risk Assessment Scorecards are an essential tool for anyone engaging with tokenized off-chain assets (aka RWA), providing a reliable and standardized way to assess and compare the risks inherent in tokenized environments.
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TRAs create a common language and methodology for comparing risks across different tokenized assets.
Methodologies and criteria are clearly defined, making it easier to understand how scores are determined.
By highlighting specific areas of risk, scorecards help users make informed decisions about investing in, trading, or interacting with tokenized assets.
Scores can be updated as new information becomes available, ensuring that risk assessments remain current as market conditions or asset characteristics change.
Please contact [email protected] if you’re interested in a Scorecard.
