A Risk-Weighted Token (RWT) is a type of cryptocurrency designed to reflect the risk associated with its underlying assets. Instead of treating all assets equally, RWTs assign a risk score based on factors such as volatility, liquidity, and market demand.This approach allows for better risk management and investment strategy formulation. For instance, assets perceived as more stable may carry a lower risk weight, while those with higher volatility have a greater weight. Investors can use RWTs to diversify their portfolios by balancing high-risk and low-risk assets. This helps them make informed decisions based on their risk tolerance and investment goals.In trading, RWTs can provide clearer insights into potential returns and losses, enabling more strategic trades. Overall, the concept aims to enhance transparency and provide tools for better financial decision-making in an ever-evolving market.