Risk Hedging Mechanism

Dynamic Margin Model:

• If a single project’s risk score exceeds a defined threshold, the system automatically triggers stop-loss protocols, reallocating funds to low-risk assets (e.g., stablecoin pools), while using options contracts to hedge against price volatility.

• A stress-testing framework simulates extreme market conditions to ensure user asset losses remain below 5% during black swan events.

Cross-Chain Insurance Pool:

• Integrated with decentralized insurance protocols like Nexus Mutual to provide coverage against smart contract exploits and cross-chain bridge attacks.