TL;DR: Death trap? No. Should you be cautious? At least as cautious as you would be with normal tinder.
Think of it this way:
Pile of loose jute twine, seem dangerous? No. People who use it for arts & crafts probably don't even realize its fire potential.
Pile of loose paracord. Dangerous? No.
Tinder can sit out without worry. Paracord can sit out without worry. What about a pile of loose jute twine and paracord mixed together? Still, nobody's worrying.
Now combine them. A strand of twine does not seem any more likely to catch a spark inside the paracord than it would sitting out on its own.
Caveat: There is now the interesting dynamic that the two play together. If they did catch fire, they are likely to be able to flare up easier together than they would individually. Putting a lighter to the end of your special paracord when it's in a haphazard heap inside your home might be more dangerous than putting a lighter to either twine or paracord on its own since the tinder could catch easily and help ignite the paracord (paracord burns too).
Caveat 2: I have used paracord as a friction saw before to cut things. I once sawed through some rolls of carpet that way. The paracord gets very hot, and it melts and snaps; I had to go through 2 or 3 pieces of paracord per carpet roll that I cut up. I've never seen paracord flame up when used this way, and I'm not sure if this kind of friction could ignite twine. I assume not, but I'll try it out and see and let you know.
Just treat it the same as any other tinder. A pile of charcloth or jute twine is not a death trap unless you store or handle it negligently.
If you're wearing it as a bracelet, however, and the twine is poking out of the end, then be careful around anything hot enough to start a fire. If the twine is loose or very frayed or dry, then a stray spark could light it, or passing your wrist through a flame while fire-tending could light it.