Risk Management Framework

OLTA’s protocol is designed to minimize risk exposure while maintaining high performance and transparency.

Each Structured Index Product integrates a comprehensive, multi-layered risk framework covering market, operational, and systemic vulnerabilities. Inspired by institutional-grade standards, the risk engine is built into the protocol’s design and periodically reviewed through governance.

Risk variables are continuously monitored via on-chain metrics (e.g., volatility, Sharpe ratio, turnover), while smart contract design ensures automated execution of safeguards such as price smoothing, slippage control, and VaR-based thresholds.

This framework helps protect capital efficiency, ensure long-term sustainability, and increase trust among institutional participants.

Continue reading

Last updated