Collateral before exposure.
Positions are backed by eligible collateral. Haircuts reflect asset liquidity, concentration, and market risk. Collateral eligibility must be published before launch.
04 / RISK ARCHITECTURE
Resilience is a structure.
Markets move. The framework must hold. Explore the layers designed to price exposure, allocate capital, and manage stress.
ECONOMIC BACKSTOP
A dedicated reserve is designed to absorb eligible shortfalls after collateral and liquidation mechanisms.
Illustrative reserve remaining$12.0M
Synthetic $12M reserve. Modeled shortfall rises above 25% stress. Reserve capacity is finite and does not guarantee protection.
Margin that reflects the position.
Portfolio exposure and scenario losses inform requirements. Concentrated positions require more capital. Breaches can trigger position reduction or liquidation.
A finite reserve. A clear mandate.
The reserve is intended as a secondary economic backstop. It cannot remove market, oracle, liquidity, smart-contract, or tail risk, and can be depleted.
WHEN A MARKET IS UNDER STRESS
Defined sequence.
Transparent limits.
The proposed loss-handling sequence prioritizes position-level resources before shared capital.
- 01Position collateral & margin
- 02Risk reduction & liquidation
- 03Eligible market-specific bonds
- 04Eligible protocol reserves
PROPOSED DESIGN, NOT A GUARANTEE
This is a concept demonstration. Risk parameters, oracle providers, collateral rules, reserve mandates, and settlement contracts are not finalized. No audit, deposit protection, insurance, or production readiness of protocol contracts is represented.
POSITION FOR WHAT COMES NEXT
Markets are not just prices.
They are positions.
ROOK. The derivatives layer
for tokenized equities.