Incident Response

RAX Protocol includes monitoring and alerting mechanisms designed to surface abnormal conditions and potential incidents.

---

What Constitutes an Incident

An incident may include severe liquidity stress, rapid increases in Risk Scores, persistent high-severity alerts, widespread anomalies, or infrastructure disruptions.

Detection

RAX detects incidents through real-time monitoring, risk threshold breaches, anomaly detection in the decision cycle, and emergency trigger activation. When an incident is detected, alerts are generated according to configured severity levels.

System Response

Upon detecting an incident, RAX may increase alert frequency, highlight affected positions, apply more conservative behavior through mandate enforcement, restrict allocation suggestions to lower-risk positions, and — in critical cases — trigger an automatic emergency stop that pauses the vault on-chain.

User Responsibilities During an Incident

During elevated risk conditions, users should review alerts and supporting metrics, avoid increasing exposure without thorough analysis, reassess risk constraints and strategy profiles, use simulations to evaluate downside scenarios, and apply independent judgment.

Communication

Significant incidents affecting system-wide behavior may be communicated through in-app notifications, documentation updates, and public communication channels. Transparency is prioritized.

Limitations

Incident detection does not guarantee prevention of losses. RAX may not detect all incidents in advance, particularly those involving novel or unprecedented conditions.