# Risk Management

## Risk engine

To mitigate the risks introduced by leverage, particularly during high-volatility market conditions, the risk management engine continuously monitors and manages exposure through:

* Continuous automated margin rebalancing across perpetual DEXs.
* Dynamic deleveraging based on market conditions (e.g. implied volatility triggers, informed order flow indicators).
* Partial TP/SL orders continuously placed with optimized distribution from current price to liquidation price, as final safeguard.

We have also conducted multiple backtests on each of our systematic strategies to demonstrate their resilience in the event of sudden market crashes.

## Transparency

At the moment, the data that is directly accessible on-chain consists of the NAV reported from simultaneous calls to all perpetual DEXs where we currently have active positions. Our goal is to soon provide zero-knowledge proofs, relying on zkTLS, to prove both the accuracy and the origin of this data through a new transparency dashboard.

Through this dashboard, users will be able to track additional metrics such as maximum leverage, asset exposure, protocol exposure, and other aggregates computed from data returned by perpetual DEX API calls. These metrics are designed to better measure and communicate the underlying risk of the strategy.