The 25 controls of the risk engine
Every trade on Hypertrade passes a deterministic contract of 25 controls. Safety controls can veto or resize; evidence controls rank opportunities without pretending to be safety rules.
Updated 2026-07-21
The risk engine is deterministic code that sits between a proposal and the exchange. Each rule ID has exactly one meaning and one owner. Safety checks may approve / resize / veto / delay; allocator checks are explicitly advisory and can never silently increase leverage.
| Rule | What it protects |
|---|---|
| R-01 · Protective stop | Every entry requires a valid protective-side stop at a sane distance. Enforcement: hard veto. |
| R-02 · Universe allowlist | Only a market permitted by the desk mandate may be traded. Enforcement: hard veto. |
| R-03 · Leverage ceiling | Leverage is capped by the strictest mandate, platform, and venue-asset limit. Enforcement: approve or resize. |
| R-04 · Position direction | An order may not accidentally flip, double, or conflict with existing exposure. Enforcement: fresh execution preflight. |
| R-05 · Risk per trade | Projected loss to the protective stop is resized to the desk's per-trade budget. Enforcement: approve or resize. |
| R-06 · Venue collateral | The destination perp DEX must have readable, usable collateral before an entry can route. Enforcement: hard veto. |
| R-07 · Daily loss limit | New risk stops after the desk reaches its daily realized-loss boundary. Enforcement: hard veto. |
| R-08 · Data freshness | A decision cannot execute from stale or incomplete decision-grade market data. Enforcement: hard veto. |
| R-09 · Drawdown auto-pause | The desk pauses when equity drawdown reaches the configured boundary. Enforcement: hard veto. |
| R-10 · Strategy cost admission | A strategy applies its frozen cost model before proposal; no generic fixed-spread profile gate may replace it. Enforcement: fresh execution preflight. |
| R-11 · Size-aware liquidity | Visible depth must support the final order size without unacceptable market impact. Enforcement: fresh execution preflight. |
| R-12 · Venue order bounds | Final notional and size must satisfy venue minimums, precision, and platform ceilings. Enforcement: hard veto. |
| R-13 · Initial-margin feasibility | The order is resized to initial margin that the destination account can actually open. Enforcement: approve or resize. |
| R-14 · Liquidation and maintenance buffer | Isolated positions keep the stop before liquidation; cross positions must retain stressed maintenance headroom. Enforcement: approve or resize. |
| R-15 · One net position per symbol | Managed entries cannot stack. Repeated same-direction manual tickets add to the wallet's one net position and one canonical trade record; opposite orders are netting, not separate hedges. Enforcement: hard veto. |
| R-16 · Re-entry cooldown | A recently exited market waits for a new independent strategy bar before it may re-enter. Enforcement: temporary delay. |
| R-17 · Factor exposure | Net and gross factor exposure are resized inside whole-wallet stress ceilings. Enforcement: approve or resize. |
| R-18 · Account health | No new risk is allowed when maintenance margin is already too close to account equity. Enforcement: hard veto. |
| R-19 · Alpha evidence | Strategy strength is an allocator input, not an uncalibrated probability or independent safety veto. Enforcement: allocator score only. |
| R-20 · Funding and carry | Expected funding and carry are charged to net expectancy instead of applying a fixed directional veto. Enforcement: allocator score only. |
| R-21 · Plan capacity | Per-position notional is resized to the user's subscription-plan allowance. Enforcement: approve or resize. |
| R-22 · Projected portfolio stress | Post-trade mark-to-stop risk, gap loss, direction, and factor concentration must fit local and wallet-wide budgets. Enforcement: approve or resize. |
| R-23 · Macro-event delay | Fresh entries wait through configured tier-one macro release windows. Enforcement: temporary delay. |
| R-24 · Initial-margin headroom | Additional initial margin must fit candidate-DEX account value minus margin already in use and the strategy/profile reserve. Transfer-withdrawable collateral is tracked separately. Enforcement: approve or resize. |
| R-25 · Capital efficiency | Capital efficiency ranks feasible opportunities but never raises leverage or vetoes an otherwise valid trade. Enforcement: allocator score only. |
Properties worth knowing
- Deterministic: same inputs, same verdict, every time. No AI variance in the safety layer.
- Independent: the AI cannot override a hard safety check.
- Transparent: every resize, delay, and veto is shown with its canonical rule ID.
- Fail-closed at live boundaries: unreadable venue, account, protection, or execution data cannot open new risk.
- No false precision: alpha strength, funding, and capital efficiency rank trades through net expectancy; they are not advertised as calibrated win probabilities.
This inventory is generated from the same canonical RuleSpec registry consumed by the product and semantic contract tests.