Risk Management

A circuit breaker gates every quote cycle by computing a unified RiskState snapshot through a RiskAggregator workflow, applying severity-based actions to the quote engine to prevent catastrophic loss. It triggers emergency shutdowns via a KillSwitch.

Risk aggregation works by implementing a RiskMonitor trait across layered monitors like LossMonitor and PositionMonitor. The RiskAggregator workflow computes the maximum severity across all monitors and applies corresponding actions to the quote engine.

Quotes are gated and spreads widen when risk monitors detect threshold breaches like data staleness, excessive drawdown, or rate limit violations. The aggregator evaluates these layered risk events and adjusts quoting behavior toward safety.

Re-entry after drawdown is handled by the PositionGuard component, which controls recovery after risk events. You must review the RiskState snapshot and tune the DrawdownMonitor parameters to safely resume quoting cycles.

Yes, you can add custom risk monitors by implementing the RiskMonitor trait. The RiskAggregator workflow automatically integrates new monitors into the unified RiskState snapshot to compute max severity and apply gating actions.

The best way to audit risk controls is using the SafetyAuditor component for periodic reconciliation and cleanup. It works alongside the RiskState snapshot to ensure layered monitors, circuit breakers, and kill switches function correctly.