Risk management framework.
Risk is a process, not a paragraph. The framework below describes how exposure limits are set, how positions are watched, when stops trigger, and who decides what happens next. Nothing here removes the possibility of loss — it shapes the size and speed of loss when something goes wrong.
Every strategy carries a target allocation band and a hard ceiling. Per-counterparty and per-venue caps are set independently of the strategy itself. No single counterparty or venue may represent more than 30% of book; opportunistic sleeve is capped at 10% of book regardless of opportunity set.
Each open position is tracked against pre-defined utilisation, slippage, and exit-liquidity thresholds. Breaches are routed to the investment committee for decision; significant breaches trigger an automatic hold on further deployment.
Per-strategy drawdown thresholds trigger a mandatory review. Smaller thresholds prompt resize; larger thresholds prompt unwind. Stops are documented in advance and applied without negotiation when reached.
A defined escalation ladder runs from desk operator → strategy lead → investment committee → CIO + CRO. Material events — counterparty failure, venue outage, depeg, smart-contract incident — trigger the upper rungs immediately, with documented response times.
The risk function reports independently of trading and treasury. The CRO has unilateral authority to pause new deployment into any strategy, counterparty, or venue, pending committee review.
Every material decision — adding a strategy, raising a limit, lifting a stop — is documented with thesis, dissent, and approvers. The record is reviewed periodically and made available to qualified investors on request.