# Custody Risk

**Custody Risk**

Within its off-chain infrastructure, the OpenDelta Protocol relies on third-party licensed custodians to safeguard basket assets. While custody partners are selected for their institutional-grade security and compliance, there remains a counterparty risk associated with potential operational failures or insolvency.

All assets are held in **segregated accounts**, ensuring that custodians have no legal claim over them—even in the event of financial distress. However, should such an event occur, minting and redemption operations may be temporarily affected while assets are redistributed to alternative custodians.

**Security Certifications**

Our commitment to security is validated by making sure that custodians which hold basket assets adopt an extensive array of internationally recognized certifications such as:

* ISO 27001: Information Security Management Systems
* ISO 27701: Privacy Information Management
* ISO 9001: Quality Management Systems
* SOC 1 Type II & SOC 2 Type II Compliance
* FIPS 140-2 Compliant Security Standards


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