Capital Preservation First
Our risk framework is designed to protect capital above all else.
Strict discipline. Defined limits. Continuous monitoring.
Avoiding losses is more important than chasing gains.
Our entire framework is built around this principle. While traditional crypto funds pursue directional exposure and volatility, Monet Capital takes the opposite approach.
Market-neutral positioning, strict drawdown controls, and systematic risk management at every level. We believe that consistent, uncorrelated performance is more valuable than volatile returns.
Foundational risk controls.
Non-Custodial
Capital deployed to on-chain smart contracts, avoiding centralized exchange exposure to significantly reduce custodial risk.
No Systematic Leverage
We operate without systematic leverage, significantly reducing liquidation risk and forced selling during market stress.
Market Neutral
Directional exposure is minimized through hedging, protecting portfolios from broad market movements.
Continuous Monitoring
24/7 automated surveillance systems monitor all positions with real-time alerting and response.
Multi-layer protection.
Protocol Due Diligence
Every protocol undergoes rigorous security review before deployment. We only use audited smart contracts with proven track records.
Dynamic Position Sizing
Position sizes are continuously adjusted based on volatility, liquidity depth, and market conditions.
Venue Diversification
Capital is spread across multiple venues and protocols to minimize concentration risk.
Emergency Procedures
Predefined protocols for rapid capital protection in adverse scenarios with automated circuit breakers.
Stress Testing
Portfolios are regularly stress-tested against historical and hypothetical scenarios to ensure resilience.
Comprehensive risk controls.
Exposure Controls
- Delta limits per position and portfolio
- Position size caps by asset and venue
- Concentration limits across strategies
Liquidity & Slippage Controls
- Venue liquidity thresholds
- Automated unwind logic
- Slippage monitoring and limits
Stress Testing
- Historical scenario analysis
- Parameter sensitivity testing
- Black swan simulations
Operational Controls
- Separation of duties
- Multi-sig approvals
- Change management protocols
Smart Contract / Tech Risk
- Vetted protocol deployments only
- Continuous monitoring
- Incident response procedures
Counterparty / Venue Risk
- Exposure limits per venue
- Diversification requirements
- Withdrawal readiness protocols
Avoiding catastrophic events.
Tail events are the primary destroyer of capital in crypto. Our framework prioritizes minimizing exposure to these risks.
Questions about our risk framework?
Schedule a call to discuss our risk management approach in detail.