Risk parameters

RISK PARAMETERS

The dials that keep the layer solvent

Risk parameters

COMING SOON

Still in development. Here's how per-asset risk configuration is designed to work once it ships:

1. Volatility banding

Each asset is bucketed by historical volatility, which directly caps how aggressive its LTV can be.

2. Dynamic haircuts

A valuation haircut is applied on top of raw price, widening automatically when volatility spikes.

3. Correlation limits

Concentrated exposure across correlated tickers (e.g. same sector) is capped at the protocol level.

4. Stress testing

Every parameter set is run against historical drawdown scenarios before it can go live.

PLANNED

  • A per-asset risk score combining volatility, liquidity and issuer concentration
  • Editable haircut and LTV bands, versioned and auditable
  • Automatic parameter tightening when correlated exposure gets too concentrated
  • A public changelog of every risk parameter update

Not live yet — this page describes the intended design so it's clear what's coming before it ships.