Risk Management Protocol

WHAT IT DOES

Risk Management Protocol gives DeFi protocol administrators, risk managers, and developers comprehensive control over risk parameters and position monitoring. It reads live on-chain data including risk parameter state, position data, collateral ratios, liquidation thresholds, protocol exposure, risk limits, and health factors. You can set collateral ratios, configure liquidation thresholds, monitor position health, pause or resume protocol operations, and view overall exposure. The tool shows you in real time the current collateral ratio, liquidation threshold, position health scores, protocol pause status, total exposure, open positions, and aggregate risk level—so you can maintain appropriate risk controls and protect the protocol from adverse market conditions.

HOW TO USE

Connect your EVM wallet (must be the contract owner or authorized address). Enter the risk management contract address, collateral ratio in basis points (e.g., 15000 for 150%), liquidation threshold in basis points (e.g., 12000 for 120%), and position ID for health checks. Use "Check risk state" to see the protocol state, exposure, open positions, risk parameters, and overall risk level. Click "Set collateral ratio" to update the minimum collateral requirement. Use "Set liquidation threshold" to adjust the liquidation trigger point. "Check position health" shows the health factor for a specific position. "Pause protocol" and "Resume protocol" control whether the protocol accepts new actions. Each action generates a transaction you review and sign in your wallet.

TECHNICAL APPROACH

This tool interacts with risk management contracts using ethers v5.7.2. It calls setCollateralRatio(), setLiquidationThreshold(), pauseProtocol(), resumeProtocol(), getPositionHealth(), getProtocolState(), getRiskParameters(), and getRiskLevel() on the risk contract to manage and query risk state. The tool validates ratio and threshold values before submission. It checks position health by reading the health factor from the contract and categorizing it as Healthy, Moderate, or At Risk. All RPC calls are wrapped in a robust error handler that extracts the actual failure reason from Ethers error objects, digging three levels deep to avoid showing "[object Object]" when a transaction reverts. Transaction costing uses receipt.effectiveGasPrice post-EIP-1559 rather than tx.gasPrice, which overstates actual spend.

WHAT IT CANNOT SEE

This tool cannot predict market volatility or guarantee that risk parameters will prevent losses in all scenarios. It cannot detect off-chain market conditions that may affect position health. It cannot simulate extreme market events or stress test risk parameters. It cannot guarantee that the collateral ratio or liquidation threshold is appropriate for all market conditions. It cannot see user behavior or off-chain factors that might affect risk. The tool manages risk parameters and monitors positions, but it does not guarantee that the protocol will be protected from all losses.

PLEASE NOTE

This tool supports EVM‑compatible chains only (Ethereum, Goerli, Sepolia, Arbitrum, Optimism, Polygon). Solana, Tron, Starknet, SUI, TON, Aptos, Bitcoin, Cosmos, and XRP are not supported. This is a read‑write tool that requires signing transactions—always verify the risk contract address, collateral ratio, and liquidation threshold before approving. No contract addresses are hardcoded; you paste the contracts you are managing. The tool is free and open under the BotGentz PLAYBOOK‑C specification.