Automations and Risk Management
To ensure efficient and reliable execution while mitigating counterparty risk, RWAOne implements the following:
Automations: Asset price tracking required to determine when liquidations, stop and limit orders should be executed, as well as the execution of these transactions themselves, are performed by Chainlink Automations or RWAOne's RWA oracle infrastructure, depending on the asset.
Risk-Adjusted Fee Structure: Traders are subject to variable fees that compound per block to capture and minimise the risk an open position poses to the Shared Liquidity Layer (SLL) via directional exposure.
Funding Fees vary as a function of the skew or imbalance in Open Interest (OI) for a particular asset.
Volatility Fees vary as a function of the time-weighted recent volatility of the underlying asset, charged on the trader's entire position size to reflect the leverage levels.
Conditional Opening Fees incentivize closing of OI imbalances by subjecting traders to differential opening fees based on their categorization as virtual makers or takers.
Risk Management Strategies: Risk management is implemented through margin requirements, position limits, and real-time risk monitoring tools to identify potential vulnerabilities and take corrective actions as needed.
Last updated