Risk management // Priime

Two-sided risk. One watcher.

What does it watch?

Every position has two risk surfaces: the inside (your leverage, health factor, and hedge) and the outside (every oracle, venue, bridge, and protocol you depend on). Most of DeFi is punitive: the liquidation fires at the threshold, and the defense comes after. Priime watches both surfaces as one stack, at block time, and acts before a problem reaches your position.

Every block
Readevery position, and every party it depends on
Decideone pick per module, inside published bands
Settleverified by the operators, on the record
See the vaultsRead the docs
Endogenous risk // 01

Before the threshold, not after it.

Why proactive?

A lending market has one line: the liquidation threshold. Cross it and the market sells your collateral at a discount, charges the penalty, and tells you afterwards. That is punitive. Priime draws its own band above that line, from the market's own parameters, and publishes it before the market tests it. Every block, Dynamic leverage and Dynamic hedge read where the position sits and make one pick: add a layer, hold, trim, or unwind. The market's line stays behind ours. Every pick, and every plan refused, lands on a public record.

What changes
Punitive DeFi
Proactive on Priime
The line
The market's liquidation threshold, set to protect the market.
Priime's band, drawn from the market's own parameters and published above its line.
When it acts
After the line is crossed.
Every block, before the line: one pick per tick.
What it costs you
A forced sale at a discount, plus the penalty.
A slice trimmed at the vault's own pace. No penalty.
What you can read
The liquidation event.
Every pick and every refused plan, on a public record.
One position · three views
Lending market · Safety controls

Dynamic leverage

Holds the loop at target. Trims when the buffer dips, adds a layer when there is room. The whole band sits above the line where the market liquidates.

Armed
1.32health factor · 2.3x leverage · inside the target bandlive
Market liquidates< 1.00
Emergency floor< 1.10
Deleverage1.18
Target1.25
Lever-up> 1.35
The cascade · one pick per block
Health factor is below1.10→Fast unwind
Health factor between1.10 and 1.18→Sell slice, repay borrow
Health factor between1.18 and 1.35→Hold, let drift sit
Health factor is above1.35→Add a layer
Market liquidates at · HF 1.00Cadence · every blockCooldown after a pick · 1 minApplied leverage · 2.3xLast action · added a layer, 1d ago
Perp venue · Hedge

Dynamic hedge

Keeps net delta at zero and the short funded. Trims the short before the venue's maintenance margin, never at it.

Armed
+6.30%net delta · target 0 · inside the bandlive
−10%0+10%
Margin · keeps the short funded
Margin is below13%→Trim short fast
Margin between13 and 22%→Slice in, widen margin
Margin between22 and 55%→Let drift sit
Net delta past±10%→Resize the short
Funding below−20.00% for 48 hours→Exit the venue
Margin now · 38.0%Short notional · $23,240Rebalances past · ±10% net deltaCadence · every blockLast action · short resized, 11h ago
Onchain · The record

Every pick, and every refusal

Each row is a transaction anyone can open. Nine most recent.

Readable by anyone
ActionDetailTime
Compoundedloop rewards reinvested3h ago
Hedge rebalancednet delta +11.2%, short resized +$2,18011h ago
Re-leveredbuffer back to HF 1.34, a layer added1d ago
Lever-up refusedthe plan would have left the withdrawal queue short1d ago
Deleveragedcollateral dipped 6%, a slice sold, $4,900 repaid2d ago
Hedge rebalancedcollateral repriced, short trimmed $1,3002d ago
Hedge openedshort on the first ring, $24,800 notional5d ago
Loop openedborrowed and re-deposited to 2.3x5d ago
Deposit$25,0005d ago

An example position, read every block. Each vault publishes its own bands and thresholds.

Go deeper: the modules in depth →
Exogenous risk // 02

Every integration arrives with its watchers.

Where do the watchers come from?

Your position depends on parties you do not control: the venue, the oracle, the bridge, the stablecoin, the issuer, the perp book, the compute itself. On Priime every integration arrives with its watchers. Add a venue and its pause and upgrade watchers come with it. Route through a bridge and the backing watcher attaches on the same block. Nobody maintains the list. The route writes it. Every block the whole surface is read as one, and the moment any part of it degrades the position is de-risked, before the anomaly reaches your funds. Caught at block time, not at the next review.

What changes
Punitive DeFi
Proactive on Priime
Who watches
You, across feeds and dashboards, when you are awake.
One module, the whole surface as one stack, every block.
When you learn
After the depeg, the pause or the unbacked mint.
The block it degrades.
What happens
You react by hand, at human speed.
The position is de-risked, and the plan lands on the record.
One lane · three views
The surface · every party this lane touches

Exogenous risk

Watches every party the position depends on as one stack, and de-risks the moment one degrades.

Armed
8watchers · 7 parties · watchedlive
Venue2 watchers · watched
Oracle1 watcher · watched
Bridge1 watcher · watched
Stablecoin1 watcher · watched
Issuer1 watcher · watched
Perp book1 watcher · watched
Compute1 watcher · watched

Watched as one stack. If any party degrades, the whole lane de-risks, not the one leg that noticed.

Watchers attach · on integrationReads as · one stackCadence · every blockLast de-risk · none needed, 5d
The catalog · one watcher, one action

What each watcher does

A signal outside the position, and the response written before the market tests it. The module reads the whole set every block and acts only on the part that needs it.

Armed
8watchers · each one a signal and a written responselive
Watch · act
Oracle divergenceA price feed drifting from DEX spot.→Pause and re-source before acting on a bad price.
Stablecoin depegA stablecoin losing its peg.→Exit the exposure early, before the slide.
Partner pauseA venue or pool pausing deposits.→Route around it, do not get stuck.
Escrow freezeA perp venue stalling withdrawals or halting the book.→Stop adding to the leg until the book clears.
Backing gapWrapped supply above the collateral behind it.→Stop taking the wrapped asset as collateral.
Compute lagOffchain compute latency degrading.→Fail safe before a tick is missed.
Contract upgradeA partner contract changing behavior.→De-risk before the new code goes live.
Redemption windowAn issuer's redemption slowing or gating.→Exit by another published route, and count the days.
Evaluated · every block, as one setActs on · the part that needs itOtherwise · holds
On integration · the route writes the list

Every integration arrives with its watchers

Add a party to a lane and its watchers attach on the same block. Drop it from the route and they leave. Nobody maintains the list.

Derived from the route
IntegrateWatchers that attach
A lending venuePartner pause · Contract upgrade
A perp bookEscrow freeze
A price oracleOracle divergence
A stablecoinStablecoin depeg
A bridgeBacking gap
A T-bill issuerRedemption window
The computeCompute lag
Attached · the block the route changesRemoved · when the route drops the partyMaintained by · the route, not a list

The surface is derived from the lane's route. Add a venue, an oracle, a bridge or an issuer and its watchers are on it the same block.

See it watching live, in the Fetch, Compute, Act loop →
Built in

Risk management is built into every Priime vault.

Where do I see it?

Risk management is not bolted on. It runs inside every vault, on both surfaces, every block. Pick one to see it run.

VAULTHedged staking carryStaked token held, perp shorted: staking yield plus funding, paid in dollars.Build this ▸VAULTLeveraged loopSupply, borrow, repeat: the health factor held in its band, every block.Build this ▸VAULTFunding-rate carryLong spot, short perp, funding collected across venues.Build this ▸VAULTTokenized T-bill floorT-bill funds held at the published issuer rate, redemption route built in.Build this ▸
Create a vault ▸See the stack