Risk Control Overview

To protect traders' interests, Dederi provides a comprehensive set of risk control measures. These include portfolio margin, pre-checks, liquidating and auto-deleveraging mechanisms, all aimed at reducing trading costs, mitigating risks, and preventing fraudulent activities. Through these measures, we strive to create a fair, secure, and trustworthy decentralized trading environment, ensuring the sustainable development of the DeFi ecosystem. Below are some of the key features:

Portfolio Margin	The platform uses portfolio margin to control risk and reduce traders' funding costs. Portfolio margin is calculated at the strategy level, accounting for risk offsets within the portfolio, providing advantages over standard margin.
Pre-Checks	Before actions such as quoting, trade execution, and withdrawals, the platform conducts rigorous pre-checks. These checks help identify potential fraudulent activities and illegal fund movements, safeguarding the interests of all traders and platform security.
Liquidating	Liquidating occurs when the margin of a trader's specific strategy is insufficient. Liquidator is allowed to take over this strategy at the liquidating price. After liquidating, traders may recover a portion of the remaining margin balance.
Auto-Deleveraging	The auto-deleveraging mechanism is triggered when the margin is insufficient to support positions. The platform automatically reduces positions for both long and short sides according to rules and ranking algorithms to prevent further losses.