DeFi Inheritance Is Harder Than Regular Crypto

Inheriting DeFi positions is significantly more complex than inheriting simple cryptocurrency holdings. Regular crypto inheritance requires seed phrases and wallet access. DeFi inheritance requires all of that PLUS understanding of:

• Specific protocols and their interfaces • Liquidity pool positions and impermanent loss • Staking and unstaking procedures (some with lock-up periods) • Lending and borrowing positions (which may require repayment before withdrawal) • Yield farming strategies that may need active management • Governance tokens and voting positions

If your heir doesn't understand these concepts, your DeFi positions could lose value, accrue unexpected fees, or be liquidated before they can act.

Documenting Your DeFi Positions

For each DeFi position, document:

• Protocol name and URL (e.g., Uniswap, Aave, Compound) • Network (Ethereum mainnet, Polygon, Arbitrum, etc.) • Position type (liquidity providing, staking, lending, borrowing) • Assets involved (token names and approximate values) • Risks (impermanent loss exposure, liquidation thresholds for borrowing) • Withdrawal procedure (step-by-step instructions for exiting the position) • Time constraints (lock-up periods, vesting schedules)

Keep a scoped position inventory separate from the complete set of spending secrets. Record official protocol documentation, network and account details, then review after changing positions. A future recipient needs both appropriate authority and competent help.

Simplification Strategy

Make your heir's job easier by simplifying your DeFi exposure:

Keep urgent position management in a deliberately authorised arrangement with appropriate expertise. Withdrawal conditions, transaction fees and collateral risks vary by protocol and can change. ZeroLatch is a delayed information handoff and cannot promise delivery before a market or protocol event. Do not treat it as automated trading or liquidation protection. Preserve a separate runbook and record when a qualified person last checked the recovery steps.