Position Size Risk Explainer

WHAT IT DOES

This tool analyzes the risks associated with a position's size and explains them in plain English. It reads the wallet address or position ID, chain ID, protocol type (lending, perpetual, margin trading), position size and notional value, collateral amount and debt, leverage ratio, health factor and liquidation price, price feed for the asset pair, price volatility and historical performance, position entry price and current market price, margin maintenance requirement and LTV ratio, protocol-specific risk parameters (liquidation bonus, margin call threshold), collateral token liquidity depth, position PnL and unrealized gain/loss, position duration and history, and total portfolio exposure across all positions. The AI layer translates these on-chain metrics into a clear, actionable risk assessment — describing the position size relative to collateral, leverage, volatility, and portfolio exposure before you open or modify a position. This helps you avoid over-sizing positions that could lead to cascading liquidations or excessive losses.

HOW TO USE

Connect your wallet, select the network, and paste the wallet address or position ID you want to analyze. Select the protocol type and enter the asset pair. The tool will fetch the position data, calculate risk metrics, and display the results alongside an AI-generated plain-English risk assessment. No transaction is required — this is a read-only operation. The AI analysis is generated from the exact data the tool reads, ensuring the guidance is grounded in what the chain actually shows.

TECHNICAL MECHANISM

The tool performs view calls to fetch position data from the protocol contract, including position size, collateral, debt, and price feed addresses. It calculates the leverage ratio by dividing the position size by the collateral value, and determines the health factor by comparing the collateral to debt. The tool calculates the liquidation price based on the current price feed and liquidation threshold, and evaluates price volatility by analyzing recent price deviations. It also assesses portfolio exposure by checking for other positions held by the same wallet. All calculations are performed against the current block state, and the AI prompt is constructed entirely from the actual read results — never from assumptions — ensuring the risk assessment is grounded solely in what the position actually shows. All reads are performed through the connected wallet's provider.

WHAT IT CANNOT SEE

This tool cannot definitively determine if position size is appropriate or safe — it only reads on-chain position data and calculates risk metrics. It cannot detect off-chain market manipulation. It cannot predict future price movements. It cannot account for correlated asset crashes. It cannot detect hidden protocol risks or vulnerabilities. Calculations depend on price feed data which may be stale. It cannot guarantee liquidation predictions are accurate. It cannot assess whether position size aligns with the user's risk tolerance. Analysis depends on available position data which may be incomplete. The AI analysis is generated from the data the tool reads and should be treated as informational, not as a guarantee of position safety.

PLEASE NOTE

EVM chains only. Analysis is AI-generated from data the app reads on-chain — always review what you are actually signing in your wallet before approving it. This tool is read-only and never initiates transactions.