Forking risk refers to the potential issues that arise when a blockchain splits into two separate chains, resulting from disagreements within the community about the protocol’s future. This can happen when developers and miners have differing views on upgrades or changes to the system.When a fork occurs, two versions of the blockchain can coexist, leading to uncertainty about which chain will gain broader support. Holders of the original cryptocurrency may find themselves with assets on both chains, complicating decisions regarding which version to follow or invest in.This situation can lead to significant price volatility as markets react to the news and aftermath of a fork. In some cases, a fork may create new tokens, further complicating the landscape for investors. Stakeholders must be aware of forking risk, as it can impact the value of their holdings and overall market stability. Overall, understanding forking risk is crucial for anyone involved with cryptocurrencies, as it highlights the potential for market disruption stemming from community disagreements.