Risk & Capital Controls

Risk is explicit, bounded, and continuously monitored in ConsortiumAI.

Risk Management

Independent Risk Auditing

MODEL_BETA provides continuous risk assessment:

• Every opportunity faces scrutiny
• No strategy bypasses risk analysis
• Conservative bias protects capital

Pre-Execution Checks

Before any execution:

Check	Purpose
Liquidity Depth	Ensure sufficient liquidity exists
Slippage Simulation	Calculate actual execution costs
Volatility Constraints	Verify market stability
Strategy Caps	Respect capital allocation limits

Continuous Monitoring

Risk monitoring doesn't stop at execution:

• Position health tracked continuously
• Exit conditions monitored
• Risk parameters enforced throughout

Capital Controls

Strategy-Specific Caps

Each strategy type has defined limits:

• Maximum allocation per strategy
• Maximum exposure per protocol
• Reserve requirements

No Forced Execution

Important

ConsortiumAI never forces execution. If conditions aren't right, capital stays protected.

Failure Handling

No Single Point of Failure

The multi-agent architecture ensures:

• One agent's error doesn't cause losses
• Consensus requirement prevents rogue execution
• Redundancy in analysis

Disagreement Halts Execution

When agents disagree:

Agent Disagreement Detected
           ↓
Execution Blocked
           ↓
Capital Protected
           ↓
Wait for Clearer Signals

No Cascading Failures

Strategy failures are isolated:

• One failed strategy doesn't affect others
• Portfolio-level risk bounds maintained
• Automatic position management

Capital Preservation Priority

The hierarchy is always:

1. Protect Capital — First priority
2. Maintain Bounds — Never exceed limits
3. Optimize Yield — Only within safety

Summary

Risk Feature	Implementation
Independent Auditing	MODEL_BETA
Liquidity Checks	Pre-execution simulation
Slippage Protection	Transaction simulation
Volatility Bounds	Market analysis
Capital Caps	User-defined limits
Failure Isolation	No cascading losses
Preservation Priority	Capital > Yield