10/12/2026
The part of a client crypto allocation that actually protects your firm is the documentation. For any position, your file should show a deliberate process, not an accident.
What goes in it: the client's objective and risk tolerance for the position, its size relative to total net worth, the custody arrangement and counterparty, the risks you discussed in writing, the decision and the reasoning behind it, and the review cadence. The risks worth naming in writing: volatility, liquidity, technology and cyber, counterparty, regulatory, total loss.
A managed sleeve makes this easier, because the custody, reporting and risk controls come documented instead of reconstructed later. Confirm your firm's requirements with your CCO, and let us know if you'd like to learn more.