All terms
Glossary
Non-custodial
An arrangement where the platform never holds participant funds — money settles directly between the parties.
In a non-custodial model, capital and distributions move directly between the manager and the investors. The software is the system of record; it never takes custody of funds.
Because no participant money sits on the platform's balance sheet, there is nothing for the platform to lose, freeze, or misappropriate — and the platform is not acting as a custodian.
Related terms
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