Funding liquidity risk pertains to the inability to obtain sufficient funding to meet financial obligations.

Market liquidity risk is associated with an entity's inability to execute transactions at prevailing market prices due to insufficient market depth or disruptions.

Policymakers have stressed the importance of proper liquidity risk management to mitigate against the adverse consequences liquidity mismatches can cause for investors and the wider financial markets. The solution has been the introduction of the mandatory application of liquidity management tools (LMTs) in a somewhat prescribed manner, and all that underpins them.
Unterforen: Anti-Dilution Levies, Dual Pricing, Extension of Notice Periods, Redemption Fee, Redemption Gate, Redemption in Kind, Side Pockets, Suspension of Subscriptions, Repurchases and Redemptions, Swing Pricing