There are three types of custody and risks associated with each.

• With self custody, a user develops their own solution (ie a flash drive not connected to the internet, a hard copy, or a vaulting device). Risks with self custody involve private keys getting locked or lost.

• With partial custody, there is a combination of self custody and an external solution (ie Bitgo). Risks with partial custody include the external service getting hacked and key getting lost from the hack.

• With third-party custody, a company holds your keys in something like an external wallet. Risks include hacking resulting in lost keys.