Risk Management Mechanics

Overview
The system responsible for the exact allocation of funds as well as safeguarding the risk-adjusted yield thesis on which Spool is built. All sub systems of the Risk Management System carry out the task of managing risk through altering the final allocations of any given Spool (Vault).
Purpose
Assigning a quantifiable Risk Score to every supported Strategy​
Storing and updating Risk Scores on-chain
Maintaining a Risk Provider Registry​
Giving Risk Model Providers the ability to maintain and update their Risk Models​
Translating Risk Scores & Risk Appetite to an allocation table for each Spool (Vault)​
On boarding and motivating the inclusion of custom methodologies by high level participants
Functional Requirements
Successful deployment of the Risk Provider Registry
At least one (1) Risk Provider
The first Risk Provider must also:
Provide the first set of (valid) Risk Scores
Expected Output
Finalized Fund Allocation Tables for each Spool (Vault) in the Ecosystem
Relevant Entities
​Risk Providers​
​Risk Model​
​Spool DAO​
​Spool Creators​
​End Users​
Relevant Implementations
​RiskProviderRegistry.sol​
Fact Sheet
Risk Model Providers never hold custody or custodial control over user funds

DHW Access Control

Risk Provider Registry

Last modified 4mo ago