Risk framework
What can go wrong, and how it is handled
A money market posture does not remove risk. It orders priorities: preservation and liquidity before yield — and it names the risks that remain.
Risk ordering
Where capital preservation and return are in tension, preservation wins. Liquidity is engineered into the portfolio rather than asserted after the fact. Yield is accepted only from identifiable sources after those filters.
Primary risk categories
- Market and funding risk — Negative funding, compressed spreads, or regime shifts can flatten or reverse carry.
- Stablecoin and de-peg risk — Reserve assets can trade away from par; issuer and redemption design matter.
- Venue and counterparty risk — Exchange, bridge or lending venue failure has historically caused larger losses than strategy failure alone.
- Smart contract and operational risk — Code, key management, reconciliation and settlement processes can fail.
- Liquidity and redemption risk — Under stress, gates or delayed settlement may be required to protect remaining holders.
- Regulatory and eligibility risk — Rules and access conditions can change by jurisdiction.
Controls
- Hard sleeve limits monitored by an independent risk function.
- Stress testing across funding, de-peg, venue freeze and correlated redemption scenarios.
- Custody tiering that minimises balances held at trading venues.
- Multi-signature controls and destination allow-lists for critical transfers.
- Forward NAV pricing and documented gating provisions.
What this page is not
This page is not personal investment advice, a guarantee of outcomes, or a substitute for the offering documents. Read Strategies, Security, FAQ and the operative terms before allocating.