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IBBC CAPITAL ACADEMY / 2027

Digital assets, custody and economic claims

Independent IBBC Capital draft content for self-study. Not affiliated with or endorsed by CFA Institute. New lessons await subject-matter review. No CFA designation or official PSM credit is awarded.

Learning goals

  • Explain technology and rights using mechanisms and limitations.
  • Explain trading access using mechanisms and limitations.
  • Explain risk assessment using mechanisms and limitations.

Draft · approximately 25 minutes, excluding further revision.

Technology and rights

A distributed ledger records state through a consensus mechanism; the technology alone does not define a token holder’s legal rights or investment value.

Native coins, stablecoins and tokenized claims have different economic backing and redemption terms; a label of stability is not a guarantee of par redemption.

Trading access

Private keys control transaction authorization; losing keys or using a compromised custodian can impair access independently of quoted market price.

Direct tokens, exchange-traded products and derivative exposure differ in custody, fees, tracking and counterparty risks; inspect the actual vehicle.

Risk assessment

Smart-contract faults, governance attacks, manipulation and fragmented liquidity can create losses; an immutable record cannot undo a flawed authorized transaction.

Valuation and correlation are uncertain, and rules differ across jurisdictions and time; verify current local requirements rather than inferring legal permission from technical access.

Formula and assumptions

Recovery gain required=1/(1−loss fraction)−1

Original applied case: Digital assets, custody and economic claims

  1. A token position 2,000 falls 30% in market price before any fees; assume custody access remains intact.
  2. Remaining market value=2,000×0.70=1,400; recovering to 2,000 requires 42.857% growth.
  3. Loss and recovery percentages use different bases; custody failure would be a separate risk.

Errors to catch

  • Do not assume: A blockchain automatically guarantees token economic value.
  • Do not assume: Every stablecoin has unconditional government backing.
  • Do not assume: A lost private key cannot affect access.

Original knowledge check

Answer every question before checking. Review explanations after submitting; retry starts a new attempt.

Sources and coverage status

These original lessons are drafts. Public outlines are used to check scope; the official learning-outcome text and proprietary question banks are not reproduced here. Follow the source for exam-year requirements and updates.