Risk of ruin is a specific Trading coordinate in the Bitcoin knowledge graph. In practical terms, it identifies the subject described here: The probability that losses deplete capital below the level needed to continue a strategy. This definition is narrower than promotional usage and should be read together with the implementation, date and evidence attached to the entry.
Risk of ruin is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Risk of ruin describes how participants value, trade or obtain exposure to bitcoin. Market behavior can affect adoption and mining economics, but it does not rewrite consensus rules. Price evidence and protocol evidence answer different questions.
Understanding Risk of ruin helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
Primary or authoritative records make these details checkable: risk of ruin is the probability that losses reduce capital below a threshold that prevents continuation; it depends on edge, payoff distribution, bet fraction, dependence and number of trials. They should be verified before using the coordinate in analysis.
The practical limit is: a low estimate is not a guarantee because tails, serial correlation, parameter uncertainty, leverage and changing strategy invalidate simple independent-trial models. A definition, office, chart pattern or published claim is not by itself a prediction or Bitcoin consensus rule.
For the clearest picture, read this entry together with Position sizing, Leverage, Maximum drawdown, Trading expectancy, Risk management, Bitcoin. The reverse links also lead from Risk management, Position sizing, Trading expectancy, Kelly criterion.