In the specific context of payment for purchases of assets (financial assets), it is the risk that the seller of a financial asset (such as securities or currencies) will deliver, but not receive payment (countervalue), based on contractual terms (either on agreed time or in the agreed amount).
Principal risk may also denote the risk that the buyer will pay, but not get the asset delivered on time or in the specifications set out in the contract. In such a case, the full value of the assets purchased or funds paid will be at risk.
