Risk Management Approach

Performance is meaningless without protection and transparency

While IAESIR is designed for high-yield, its architecture prioritizes capital preservation, risk containment, and measurable accountability. This section outlines the protocol’s approach to risk and the key metrics used to track its health, efficiency, and performance.

IAESIR’s risk mitigation is multi-layered, combining algorithmic safeguards, vault controls, and treasury strategies.

A. Algorithmic Risk Controls

• Max 30–50% of AUM deployed in trades

• Max 6 open positions at any time

• Dynamic SL/TP logic per position

• Weekly retraining of models to avoid overfitting

• Zero leverage by default

• Real-time risk scoring per asset

B. Vault-Level Protections

• Impermanent Loss Protection (DILP) fund

• Auto-rebalancing between LP and trading sides

• Dynamic yield optimization based on market conditions

• Withdrawal penalty logic to discourage farming abuse

C. Protocol & Treasury Risk

• Multi-sig wallets for treasury control

• No protocol-controlled minting (no inflation risk)

• Reserve allocation for volatility and crash scenarios

• Roadmap includes insurance layers and RWA hedging strategies