> For the complete documentation index, see [llms.txt](https://betfin.gitbook.io/betfin-public/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://betfin.gitbook.io/betfin-public/staking-manual/staking-explanation/risk-protection.md).

# 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:

1. 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.
2. 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.
3. 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.