7.2 Market Risk Management

  • Response to Extreme Market Conditions:When Bitcoin drops more than 30% in a single day, the protocol automatically triggers the following protective mechanisms:

    • Leverage in High-Growth Tier is forcibly reduced to 1x

    • RWA allocation in the Balanced Tier is increased to 90%

    • New fund subscriptions are paused for 24 hours to protect existing users

  • Liquidity Risk Control:A three-tiered liquidity buffer system is established:

    • Tier 1: Stablecoin reserve (covers 10% of total pool size)

    • Tier 2: Highly liquid DeFi assets (covers 20%)

    • Tier 3: RWA-backed lending (covers 30%)

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