Risk Overview
The Risk Overview provides a high-level view of current DeFi market conditions as observed by RAX Protocol.
It is designed to answer a single question:
What is the current risk environment?
This view helps users establish situational awareness before analyzing portfolios or making allocation decisions.
What the Risk Overview Shows
The Risk Overview aggregates multiple system-level indicators into a single, coherent view.
Key elements include:
Global Risk Score
Market volatility indicators
Detected AI anomalies
Monitored liquidity and TVL distribution
Recent changes in risk conditions
Together, these signals describe the overall stability and stress level of the DeFi environment.
Global Risk Score
The Global Risk Score summarizes relative market risk across supported chains and protocols.
Lower values indicate more stable conditions.
Higher values indicate elevated or deteriorating conditions.
The Global Risk Score should be interpreted as a contextual signal, not a prediction.
Market Volatility
Volatility indicators reflect the magnitude and persistence of price and yield fluctuations.
Rising volatility often precedes:
Liquidity stress
Increased liquidation risk
Correlated market movements
Volatility metrics help users assess whether current conditions favor defensive positioning or opportunistic allocation.
AI Anomalies
Anomalies highlight deviations from expected behavior detected by RAX models.
Examples include:
Unusual liquidity movements
Abrupt yield changes
Inconsistent oracle or pricing signals
Anomalies are early warning indicators and do not necessarily imply loss or failure.
Liquidity and TVL Monitoring
The Risk Overview includes visibility into the distribution of monitored TVL across chains and protocols.
Changes in liquidity concentration may signal:
Capital migration
Emerging dependencies
Increased systemic risk
Understanding where liquidity is concentrated helps contextualize other risk signals.
How to Use the Risk Overview
The Risk Overview is best used to:
Establish a baseline understanding of market conditions
Identify periods of elevated risk or instability
Decide whether to proceed with deeper analysis
Adjust monitoring frequency and alert sensitivity
It is typically the first step before reviewing portfolio-level metrics.
Limitations
The Risk Overview does not:
Replace detailed protocol analysis
Identify optimal strategies
Predict market direction
It provides context, not conclusions.
Summary
The Risk Overview is a situational awareness tool.
It helps users understand the current risk environment at a glance, enabling more informed and disciplined decision-making throughout the RAX system.
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