Singularity Finance
  • Singularity Finance
  • Introduction
  • Background
    • Merger
  • Market Opportunity
    • Tokenise, Monetise and Decentralise the AI Economy
      • Hardware Layer
      • Platforms
      • Foundation Models and Knowledge Graphs
      • Model Hubs
      • Applications
      • Services
      • Data: Monetising Data Contributions
  • SFI Value Proposition
    • Dedicated Layer-2 for AI Economy
    • Core Pillars of the SFI L2
      • AI-Centric dApp
        • Singularity Rep Points
      • Tokenisation Framework
      • Identity Solutions
      • SFI Vaults
        • Architecture
        • Profit Framework
        • Operational Flow
        • Use Cases for SFI Vaults
        • Features
          • Strategies
          • Vault Management Dashboard
          • Risk Engine
          • Execution Engine
          • Fee Infrastructure
          • Governance
          • Router
          • Oracles
          • Zapper Framework
          • Keepers
      • Auxiliary Features
        • AI-Driven Market Making and Liquidity Provisioning
        • Prediction Markets
        • On/Off Ramps
    • Tokenised Data Centres
  • SFI L2
    • Introduction
    • L2 Architecture
      • Operational Model: Optimistic Rollups
      • Data
      • Sequencer
    • Core Features
      • Bridges
      • Indexers
      • Oracles
      • Relays
      • Verifiable Random Function (VRF)
      • Account Abstraction
      • Automation and Offchain Data Integration
  • LAunch
    • Testnet
      • Setup Guide
      • How to Participate in the SFI Testnet
      • FAQs
    • Mainnet
  • Tokenomics and Utility
    • Token Merge & Allocations
      • Allocation & Distribution
    • Token Utility
    • SFI Nodes
      • Details
    • Roadmap
    • Leadership Team
    • Conclusion
    • Appendix
  • Legal
    • SFI Token Terms & Conditions
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  1. SFI Value Proposition
  2. Core Pillars of the SFI L2
  3. SFI Vaults
  4. Features

Risk Engine

The Risk Engine forms the backbone of SFI Vaults’ safety architecture, actively mitigating risks associated with DeFi investments. It continuously monitors key parameters to safeguard user funds against adverse events.

Key Metrics Monitored:

  • Exit Liquidity Risk: Ensures sufficient reserve assets to manage withdrawal requests without triggering liquidations.

  • Smart Contract Risk: Monitors for vulnerabilities or exploits within integrated protocols.

  • Depegging Risk: Tracks asset prices against their expected value to avert losses.

Protective Actions:

  • Dynamic Reallocation: Rebalances assets in response to liquidity trends or market volatility.

  • Emergency Liquidation: Liquidates positions in a loss-minimising manner when predefined risk thresholds are breached.

  • Capital Protection: Secures principal by optimising exit routes and preserving reserves.

Integration with VMD:

The system provides vault managers with real-time risk analytics and generates automated risk reports to support informed decision-making and strategy adjustments.

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Last updated 5 months ago