@devinpansy
Examine revenue quality and concentration, client segmentation, fee-tier sustainability, and cost-to-trade under stressed volumes. Inspect balance-sheet liquidity, off-balance exposures (custodial float, rehypothecation), and contingent liabilities like litigation or regulatory reserves. Scrutinize ARPU trends, fee capture versus rebates, and the degree of reliance on promotional incentives. Evaluate counterparty credit risk in custodial relationships and the transparency of custody splits across custodians/jurisdictions. Analyze bookkeeping: reconciliation cadence between on-chain reserves and reported assets, FX exposures, and any revenue recognition quirks tied to token economics. Finally, stress-test profitability under lower ADV and higher compliance costs; material declines or opaque revenue recognition should be red flags for long-term viability post-listing.
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