Guardrails

Guardrails define the non-negotiable safety constraints of the RAX Protocol.

They exist to ensure that governance decisions, configuration changes, and protocol evolution cannot compromise core risk principles or system integrity.


Purpose of Guardrails

Guardrails are designed to:

  • Protect users from catastrophic configuration changes

  • Prevent governance-driven risk escalation

  • Preserve the core risk-first philosophy of the protocol

  • Maintain system stability during periods of stress or transition

They represent hard limits rather than preferences.


What Guardrails Apply To

Guardrails may apply to:

  • Maximum acceptable risk parameters

  • Exposure and concentration limits

  • Allocation logic boundaries

  • Critical security and monitoring mechanisms

  • Token supply and distribution constraints

These limits cannot be bypassed through standard governance proposals.


Non-Governable Parameters

Certain parameters are intentionally excluded from governance control, including:

  • Maximum token supply

  • Core risk score normalization logic

  • Critical safety thresholds

  • Emergency response mechanisms

  • Data integrity and monitoring safeguards

These parameters are fixed or changeable only through predefined upgrade processes.


Emergency Constraints

In periods of extreme stress, additional constraints may be enforced automatically or administratively.

Examples include:

  • Temporary restriction of allocation suggestions

  • More conservative simulation assumptions

  • Elevated alert sensitivity

Emergency constraints are designed to prioritize capital protection over flexibility.


Governance Within Boundaries

Governance operates within guardrails.

Token holders can influence:

  • How incentives are distributed

  • Which integrations are prioritized

  • How parameters are tuned within safe ranges

They cannot override fundamental safety assumptions.


Transparency and Documentation

All guardrails are documented and auditable.

Changes to guardrail definitions, when possible, are communicated clearly and are subject to rigorous review.


Summary

Guardrails ensure that RAX remains a risk-first system even as governance evolves.

They protect the protocol and its users by defining clear, enforceable boundaries that cannot be compromised by short-term incentives or governance pressure.

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