Risk Protection Layer
Two inputs feed the engine: the live position, for price, funding, and the state of both legs, and a single risk preset that sets the capital split and the guard thresholds together. The engine runs three guards. Each is always detecting, and the user chooses only the response for each, either to act automatically or to leave it for manual adjustment. Revoking the trading key, or letting it expire, sits above all of it.
Automations
Three guards watch your position around the clock. Each one looks for a specific problem, and you choose how it responds.
How the guards work
Auto. The guard acts on its own and signs the repair with your trading key and no action is required.
Manual. The guard notifies you when action is needed, and you manually make the changes.
The guards run on a schedule. The hedge guard and safety buffer check every 10 minutes, because a price move needs a fast response. The yield guard checks hourly, because funding changes over hours. A separate daily check watches your trading key's expiry.
The guards can only act while your trading key is active. If the key is revoked or expires, nothing triggers, and your position stays open but unmanaged. Renew your key before it expires to keep the guards running. See Trading Key.
Hedge guard
Spot and short no longer match
Every 10 minutes
Re-hedge, or sell and exit
Yield guard
Net funding negative over the window
Hourly
Exit to USDC
Safety buffer
Distance to liquidation
Every 10 minutes
Add margin
Hedge guard
The hedge guard watches whether your spot holding is still matched by the short. If net exposure moves beyond a small floor, the hedge has broken.
Auto-deleveraging, a perp liquidation and a manual close all look the same from the outside. So the guard watches the shape of the position rather than the cause, and it catches all of them. This matters most in a crash, when the short is what protects you.
On Auto, it re-hedges the position, or sells and exits.
Yield guard
The yield guard watches funding. It triggers when funding has been net negative across a two-day window by default and can be adjusted on advanced configuration and in the settings.
Netting across the window keeps the guard steady. An hour or two of negative funding inside an otherwise positive stretch doesn't count, so a brief dip won't churn your position.
On Auto, it exits the position to USDC.
Safety buffer
The safety buffer watches how close the short is to liquidation. The short carries its own margin, so a rally can threaten it even while the position's total value stays flat.
When the distance to liquidation crosses the trigger (10% towards the liquidation price), the safety buffer adds margin to move the liquidation price away, restoring the position to your preset's target. It first uses any spare USDC in your account, which costs no fees and keeps your funding income intact. If there's no spare USDC, it closes just enough of the position to fund the top-up.
Changing your automation settings
Go to the portfolio page for the strategy
Click the settings icon
Set each guard to Auto or Manual
What the guards don't cover
The guards lower risk; they don't remove it. A very fast price move can outrun the safety buffer, and exits can fill at worse prices when markets are thin. The guards also can't move funds out of your account. Withdrawals or transfers always require user signature.
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