Risk Framework
An overview of how AXM defines, limits, and manages risk across on-chain strategies.
Capital Preservation First
Risk is managed with the objective of preserving capital before pursuing incremental returns.
Liquidity as a Requirement
Strategies are designed to maintain the ability to reduce or exit exposure under changing conditions.
Rule-Based Exposure
Risk decisions follow predefined limits and rules rather than discretionary judgment.
Defined Constraints
Participation operates within explicit boundaries established before deployment.
Risk Management Process
Before any strategy is deployed, acceptable exposure levels are defined based on the client’s mandate, risk tolerance, and time horizon. These limits govern position sizing, venue selection, and strategy scope.
Liquidity is evaluated at both the asset and protocol level. Strategies are selected with the expectation that exposure may need to be reduced or exited without reliance on favorable market timing. Participation is avoided where exit conditions are unclear, impaired, or dependent on discretionary counterparties.
Risk is evaluated explicitly across multiple dimensions, including market behavior, liquidity conditions, protocol mechanics, governance structures, pricing dependencies, and operational factors. This assessment is ongoing and forms the basis for exposure adjustments when conditions change.
Strategy exposure is monitored continuously against predefined thresholds. If conditions deviate from expected parameters, exposure may be adjusted, reduced, or paused in accordance with established decision rules.
Boundaries & Exclusions
Participation is structured within clearly defined limits established before deployment. AXM operates without pooled capital structures, fixed or guaranteed outcomes, interest-based income mechanisms, leverage-driven yield strategies, or long-term capital lock-ups.
Governance & Client Control
Risk decisions are governed by predefined limits and decision rules rather than individual discretion. This structure is designed to ensure consistency across market conditions and to avoid ad-hoc responses under stress.
Clients retain control of their assets at all times. AXM operates within clearly defined execution permissions that are transparent, limited in scope, and revocable, ensuring client agency is preserved.
Risk assumptions and exposure limits are reviewed on a defined schedule and when material changes occur. This includes changes to protocols, market structure, or liquidity conditions that may affect risk.
Risk-related decisions and exposure changes are recorded and can be reviewed to understand how decisions are translated into on-chain actions.
