Risk Management & Guardrails
The Mammoth engine operates within a Safety-First framework. The system monitors the following quantitative constraints in real-time to protect user principal:
Net Exposure Ratio (NER) ≤ 6%: Limits directional bias to ensure market neutrality.
Gross Leverage Ratio (GLR) ≤ 2x: Prevents excessive capital clustering and systemic risk.
Maximum Drawdown (MDD) Target ≤ 15%: A hard-coded threshold that triggers automated de-risking protocols.
Maintenance Margin Ratio (MMR) ≤ 30%: Caps margin occupancy to ensure a 70%+ liquidity buffer, significantly reducing liquidation risks during market volatility.
Asset Concentration Limit ≤ 5%: Ensures diversification across multiple underlying pairs and protocols.
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