🚒5.6.3 Risk Engine – Automated Protection for LPs

  • Drawdown and Loss Limits: The protocol enforces daily and total drawdown limits. If breached, the trader’s allocation is automatically revoked.

  • Position Sizing and Leverage Caps: Smart‑contract logic caps position sizes and leverage, preventing traders from taking excessive risk.

  • Segmentation and Circuit Breakers: Funds are spread across cohorts to diversify risk. During periods of extreme volatility, circuit breakers pause allocations until markets stabilise.

  • AI‑Driven Oracles: Risk parameters can tighten or loosen dynamically based on market volatility and sentiment, similar to how DeFi protocols adjust interest rates algorithmically

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