> For the complete documentation index, see [llms.txt](https://piggybank.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://piggybank.gitbook.io/docs/usdc-yield/risk-management.md). # 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. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://piggybank.gitbook.io/docs/usdc-yield/risk-management.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.