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Sector Finance
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    • Introduction
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  • 🛠️PRODUCTS
    • Product Suite
      • Aggregator Vaults
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      • Delta-Neutral LP
      • Leveraged Delta-Neutral LP
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    • Risks
  • ⚙️Risk Engine
    • Description
    • Mechanics
    • Auto-Rebalancing
  • 🏛️SECTOR DAO
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  1. Risk Engine

Description

PreviousRisksNextMechanics

Last updated 2 years ago

Sector's risk engine analyzes data to identify and assess risk for various investment strategies. The risk engine powers all of the investment products.

The risk engine...

  • Helps users make better-informed decisions about their investing activities

  • Provides information about risks associated with specific protocols and crypto assets

  • Informs the development of the risk-tranched vaults

The biggest challenge in assessing risk in DeFi consists of accounting for black-swan-like events such as smart contract hacks and stable-coin de-pegs. This is similar to assessing insurance premiums for catasrophic events. We approach this task by estimating probabilites and associated losses for such events.

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