Dynamic Risk Engine

Overview

The Dynamic Risk Engine is Omen’s safety layer — a set of algorithms and smart contracts that monitor all vaults in real time to prevent overexposure and mitigate losses.

How It Works

• Risk Profiling: Each vault has a unique risk score updated automatically.

• Circuit Breakers: The system halts or rebalances vaults if extreme volatility is detected.

• Stop-Loss Logic: AI sets and adjusts exit thresholds dynamically.

• Portfolio Weighting: Reallocates capital between vaults to maintain healthy exposure.

Key Benefits

• Real-time protection without manual oversight.

• Reduces downside risk during market shocks.

• Keeps vault strategies balanced across market phases.