[Q2] - Algo Risk Terminal 🏅

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe proper data and exit strategy is the way to mitigate counterparty risk, and that it is unfair that only people with size can dedicate time to doing this, thus limiting decentralized inclusion of DeFi for everyone. We built this tool to make safety and risk management a priority and a simple addon for every user of DeFi, and thus mitigate more of the unfair events that has happened in the space.

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe we need regular prudence and checklist to monitor risks on all contracts and websites, which is why we integrated goplusapi into our product, to make every user know if the contract they deal with is safu. We also utilize the API to inform our users to automatically pull out of positions whenever it might be unsafe.

We spent a few days looking through Nansen and OkLink to see how wallets are tagged. We then decided to build something that's more pool focused, because we know that at the end of the day, users care more about how these wallets might impact them. Our product, Risk Terminal, uses general protocol data and tags (whale, voluminous) and also more pool specific (LPer), to see if they might have certain foresight when it comes to the counterparty risk of a pool. In our example, we tagged large sized traders, lp, whales, hodler, arbitrageurs in the Pancake Swap pool. In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game.

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe proper data and exit strategy is the way to mitigate counterparty risk.

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe proper data and exit strategy is the way to mitigate counterparty risk, and that it is unfair that only people with size can dedicate time to doing this, thus limiting decentralized inclusion of DeFi for everyone. We built this tool to make safety and risk management a priority and a simple addon for every user of DeFi, and thus mitigate more of the unfair events that has happened in the space.

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe proper data and exit strategy is the way to mitigate counterparty risk. Which is why we integrated fireblocks' SDK (our firm uses fireblocks as well), to trigger a withdrawal transaction - to be signed by other signers - whenever conditions are met. We love the convenience and safety of fireblocks, as it took us a short while to understand the codebase, but also felt safe knowing it's multisig and whitelist protected.

In our professional life, we work as quant traders at a hundred MM sized fund, and we know that sharpe ratio and risk adjusted returns is more important than pure return. Not losing money is the name of the game. And we obsess over the fact that we can't quantify counterparty risk (in tradfi, one never has to worry about the CME not settling). As such, beyond proper bet sizing (splitting out positions across many strategies and being properly hedged for tail risks). We have internally used tooling that monitors other sophisticated traders (jump, wintermute, etc), to see if they pull out of a position that we're in as well. Which is why we built Risk Terminal, because it personalizes these data for every investors there are, and enables everyone to not be rugged unfairly. It also has an automatic withdraw feature, whereby if certain conditions are met (such as 30% of the pool withdrawing in the last 10 min), it automatically pulls the position back into the original wallet. We believe proper data and exit strategy is the way to mitigate counterparty risk, and that it is unfair that only people with size can dedicate time to doing this, thus limiting decentralized inclusion of DeFi for everyone. We built this tool to make safety and risk management a priority and a simple addon for every user of DeFi, and thus mitigate more of the unfair events that has happened in the space.