Risk Management

Our system protects capital and mitigates Impermanent Loss (IL) through three primary mechanisms:

TWAP Filters

Market prices, especially in crypto, are noisy. A single "scam wick" or a momentary flash crash can create a false signal. If an algorithm rebalances based on this "noise," it will lock in real losses for no reason.

Our Solution: Our algorithms do not use the simple spot price to make decisions. Instead, we use a TWAP (Time-Weighted Average Price) filter.

By referencing the average price over a set period, our system smooths out market noise. It will not be "tricked" by a single bad trade or a 10-second price spike. This ensures that rebalancing events are only triggered by genuine, sustained market movements.

Strategy Architecture (Minimizing Impact)

Finally, the very architecture of our Dynamic Symmetric Range strategy is a risk management tool. It is built on a "Wide Band, Narrow Trigger" philosophy.

• Wide Price Band: This is our "earning zone." By setting a wide range, our vault remains "in-range" (collecting fees) for longer, even during moderate volatility. This reduces the need for frequent rebalancing.

• Narrow Reset Bound: This is our "trigger."

This combination provides a dual benefit: the Wide Band provides stability, while the Rebalance Cooldown (Mechanism 1) prevents the narrow trigger from firing too often. This system is designed to capture consistent fees while minimizing the frequent realization of Impermanent Loss.