Risk Assessment
Understand, measure, and manage risks across your DeFi investments using Difract's comprehensive risk assessment framework.
Overview
Difract's Risk Assessment module provides a multi-dimensional analysis of risks associated with DeFi investments, helping you make informed decisions and protect your capital.
Key Features
- Protocol risk scoring
- Smart contract audits
- Market risk analysis
- Liquidity assessment
- Real-time monitoring
Risk Categories
Difract analyzes multiple risk categories to provide a comprehensive risk assessment.
Smart Contract Risk
- Code audit status
- Security vulnerabilities
- Implementation quality
- Upgrade mechanisms
- Historical incidents
Protocol Risk
- TVL stability
- Protocol maturity
- Governance structure
- Team background
- Community strength
Market Risk
- Price volatility
- Liquidity depth
- Market manipulation
- Correlation risk
- Systemic risk
Risk Scoring
Understand how Difract calculates risk scores for different protocols and investments.
const riskScore = await difract.risk.calculate({
protocol: "aave",
asset: "USDC",
chain: "ethereum",
categories: [
"smart_contract",
"protocol",
"market",
"liquidity"
],
weights: {
smart_contract: 0.4,
protocol: 0.3,
market: 0.2,
liquidity: 0.1
}
});Smart Contract Analysis
Analyze smart contract risks and security measures.
const contractAnalysis = await difract.risk.analyzeContract({
address: "0x1234...5678",
chain: "ethereum",
analysis: {
auditReports: true,
vulnerabilities: true,
codeQuality: true,
upgradeability: true
},
history: {
incidents: true,
upgrades: true,
timeframe: "1y"
}
});Market Risk Analysis
Evaluate market-related risks and their potential impact on your investments.
const marketRisk = await difract.risk.analyzeMarket({
asset: "ETH",
metrics: {
volatility: {
timeframe: "30d",
type: "historical"
},
liquidity: {
depth: "1000000", // USD
impact: 1 // % price impact
},
correlation: {
assets: ["BTC", "USDC"],
window: "90d"
}
},
scenarios: {
marketCrash: -30, // %
liquidityCrisis: -50, // %
systemicEvent: -70 // %
}
});Risk Monitoring
Set up continuous monitoring of risk factors and receive alerts when thresholds are breached.
const riskMonitor = await difract.risk.monitor({
portfolio: "portfolio_123",
thresholds: {
totalRisk: 8, // max risk score
exposure: {
protocol: 30, // % max per protocol
asset: 20, // % max per asset
chain: 40 // % max per chain
},
volatility: {
threshold: 50, // % annualized
window: "7d"
}
},
alerts: {
channels: ["email", "telegram"],
frequency: "realtime",
conditions: {
riskIncrease: 2, // points
tvlDrop: 20, // %
auditAlert: true
}
}
});Risk Mitigation
Implement strategies to reduce and manage investment risks.
const mitigation = await difract.risk.mitigate({
strategy: {
type: "dynamic_allocation",
settings: {
maxRiskScore: 7,
rebalanceThreshold: 5, // %
diversification: {
minProtocols: 3,
maxExposure: 30 // %
}
}
},
insurance: {
coverage: ["smart_contract", "hack"],
providers: ["nexus", "unslashed"],
amount: "1000000" // USD
},
safetyMeasures: {
stopLoss: 10, // %
cooldownPeriod: "6h",
emergencyWithdraw: true
}
});