Risk Management Strategies

Vault Provider Risks

• DEX Dependency: Mitigated by due diligence, live monitoring, and emergency withdrawal plans

• Oracle Failures: Multi-oracle setup with fallback protocols

• Fee Logic Errors: Individual HWM tracking, audit trails, refund safeguards

Data Provider Risks

• Quality & Availability: Multi-source validation, real-time backups, provider SLAs

• Security: Access controls, anomaly detection, incident response protocols

Strategy Curator Risks

• Pool Selection: Enforced criteria for liquidity, volume, and volatility

• Backtest Bias: Out-of-sample testing, Monte Carlo sims, live paper trading

• Capacity Saturation: Modeled thresholds, staged capital, multi-pool diversification

Guardian Oversight

• Performance Drift: Monitors deviation vs model, triggers recalibration

• Monitoring Gaps: Redundant systems with health checks

Slow Response: Clear incident escalation paths and role-based response drills