Risk Management

Torque implements a comprehensive risk management system to protect users and maintain stability. The system includes position limits and optimized liquidation mechanisms. Additionally, it features real-time monitoring and emergency procedures to ensure robust protection against market volatility and potential exploits. The system incorporates dynamic parameter adjustment and cross-chain risk synchronization to provide multi-layered protection across operations.

Circuit Breakers

Price deviation protection with volume-based triggers, time-based cooldowns, and gradual resumption. The system automatically detects abnormal market conditions and implements protective measures to prevent cascading liquidations.

Position Limits

Maximum position sizes, leverage caps, collateral requirements, and cross-position limits. These limits are dynamically adjusted based on market conditions and user risk profiles to maintain protocol stability.

Liquidation System

Automated liquidations with keeper incentives, partial liquidation support, and emergency procedures. The system includes health factor monitoring, price feed validation, and gradual position unwinding to minimize market impact.

Monitoring

Real-time position tracking, health factor monitoring, price feed validation, and system health checks. The monitoring system provides early warning signals and automated risk mitigation measures.

Risk Parameters

Dynamic adjustment of risk parameters based on market conditions, including market-based thresholds, protocol-wide limits, and account-specific limits. These parameters are regularly reviewed and updated to maintain optimal risk management.

Emergency Procedures

Comprehensive emergency procedures including emergency pause functionality, gradual position unwinding, recovery mechanisms, and user protection measures. These procedures are designed to protect users during extreme market conditions.

Best Practices

Regularly monitor your position health using the provided tools and adjust as needed. Use appropriate leverage based on your risk tolerance and market conditions. Implement stop-loss orders to protect your positions from unexpected market movements. Diversify your positions across different assets to spread risk. Always stay within recommended risk limits and maintain sufficient collateral to avoid liquidations. Keep a close eye on market conditions and be prepared to adjust your positions accordingly.

Getting Started

Begin by understanding the risk parameters and how they affect your positions. Set up regular monitoring of your position health and establish appropriate limits for your trading strategy. Utilize the available risk management tools and stay informed about protocol updates and market conditions. Follow the best practices to ensure safe and effective trading on the platform.