Strategy risk
Each strategy sleeve carries distinct technical, market, liquidity, and operational risks.
Risk mitigation begins with naming the actual failure modes of each strategy type.
Staking
Risks can include validator performance, slashing, lock-up constraints, and network-level operational dependencies.
Funding rate strategies
Risks can include basis dislocations, venue stress, collateral efficiency pressure, and execution timing.
Arbitrage and liquidity provisioning
Risks can include transfer delays, fragmented liquidity, inventory imbalance, and market structure changes.
Mitigation layers
Mitigation includes diversification, limit systems, monitoring, treasury buffers, and governance controls.