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What happens if I forget the backup password?

If you still have access to the wallet through the PIN you can make a new backup, without password or with a new one of your choice. If you no longer have access to the wallet from any device (eg. You failed the PIN 3 times) and you forgot the backup password, this is unusable and you lost access to your wallet and consequently to your funds, so if you choose to encrypt the backup is essential to remember the password.

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