# Risk Management

## Lending

Every lending position on PiggyBank is continuously monitored by the Risk engine. 

The Loan to Value (LTV) of the position is automatically rebalanced by unwinding delta neutral positions and depositing collateral, depending on the collateral asset price.

The target LTV is also dynamic adjusted based based on that asset market conditions using risk metrics (e.g. implied volatility triggers, informed order flow indicators).

## Delta neutral strategies

The other leg of the carry trade is deployed in the exact same delta neutral multi-strategies allocation than USDC. Refer to corresponding documentation for more informations on its [risk management](https://piggybank.gitbook.io/docs/usdc-yield/risk-management).