Operations

Risk Engine

Automated risk scoring across 6 dimensions — protocol maturity, exploit history, contract verification, TVL stability, APY consistency, and leverage. Continuous portfolio monitoring with flow detection and depeg alerts.

Risk scoring Scoring example Portfolio monitoring Hard rules

The Security page covers infrastructure protection. The Risk Engine operates at the portfolio level — scoring positions, monitoring changes, and enforcing hard rules before and after you invest.

Risk dimensions

Every position is graded automatically before it reaches your board. Fail any critical dimension and it never shows up:

Dimension	Weight	What it checks
Protocol maturity	High	Time since launch, audit history, TVL stability
Exploit history	Critical	Cross-reference with 523+ documented hacks
Contract verification	Required	Source verified on Etherscan, ABI matches
TVL floor	Required	Minimum $1M — no micro-pools
APY consistency	Medium	Flagged if >3σ deviation from historical baseline
Leverage ratio	Info	Shown to user, never auto-blocked

Scoring example

Here is what a real scoring output looks like for a position entering the board:

Position: Euler USDC (Ethereum)
────────────────────────────────
Maturity   ████████░░ PASS
  Feb 2024, $480M TVL, Spearbit audit

Exploit    ██████░░░░ FLAG
  v1 hacked Mar 2023 ($197M)
  v2 = new codebase

Contract   ██████████ PASS
  Verified source, ABI matches

TVL floor  ██████████ PASS
  $127M vault (min: $1M)

APY        ████████░░ PASS
  12.4% vs 11.8% 7d avg (1σ)

Leverage   ░░░░░░░░░░ INFO
  None — pure lending supply

Result: TIER2 — prior v1 hack
Action: Deep research. User decides.

Exploit history is the only dimension that can single-handedly prevent a TIER1 rating. An unresolved hack in the last 12 months caps the position at TIER2, regardless of other scores.

Portfolio monitoring

Active positions are continuously monitored for changes:

Flow detection

Unexpected token movements in/out of position wallets flagged within minutes.

APY drift

Yield moves >20% from entry baseline = position flagged for review.

TVL drops

Protocol TVL drops >25% in 24h = immediate alert.

New exploits

DB updates cross-referenced with active positions.

Token health

Depeg detection for stablecoins in active positions.

Hard rules (non-negotiable)

Only BLOCK for objective security threats. Leverage is market risk — the user decides. The system shows the full APY breakdown (base + reward) and lets the user make the call.

That covers the full system. Start from the Overview to see all three pipelines in context, or explore the Yield Engine to understand how positions are discovered.