🛡️Risk Protection
Risk Protection: Drawdown Limits & Loss Thresholds
The protocol includes robust safeguards to manage exposure and protect provider capital. Three primary layers of protection are enforced by the smart contracts:
5% Daily Drawdown Limit: Independent games are capped at withdrawing no more than 5% of the pool's daily balance. This prevents a catastrophic drain from a single day of player wins.
50% Loss Threshold (Circuit Breaker): If sustained player wins reduce the pool balance below 50% of the total expected principal, a circuit breaker automatically halts all new betting until the pool recovers.
80-Week Lock: All new liquidity provision is subject to a mandatory 80-week lock period. While rewards can be claimed at any time, this lock ensures long-term pool stability and prevents short-term "free-riding" on the house edge.
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