Advanced Settings

Setup: Step 5

There are a selection of risk management policies that, if enabled, restrict your product from trading if certain conditions are met. They are permanent until the next protocol upgrade.

The following configurations should be handled with caution as they can severely limit Vault management activity. If you have any questions about using any of the below policies, come and discuss them with us.

All risk management policies aside from Flash Loan Protection can be found in the modal that appears after clicking theAdd a Policy (optional) button.

This policy sets a minimum time between subscriptions and redemptions to prevent against flash loan attacks. It should never be zero (unless you have a really whacky use-case in mind we haven't thought of!). We strongly recommend this setting to be at least 1 second and arguably more.

Adapter Whitelist (optional)

This policy enables the Vault to limit their usage to certain pre-specified adapters (eg. Synthetix). Note that usage of any DeFi protocol adapter not in an adapter whitelist will be restricted. There are cases that this could be beneficial (eg. a synth-only product) but it can also be crippling (eg. If Synthetix upgrades to v3, Portfolio Manager cannot access v3 until the subsequent Enzyme release).

Adapter Blacklist (optional)

This policy prevents the Vault from using certain adapters. Note that this policy should be used with caution as it can severely limit Vault management activity until the subsequent protocol release. There are cases that this could be beneficial (eg. if you want to make a point that your Vault doesn't interact with a certain adapter (integration) which you thinks has a bad reputation).

Asset Whitelist (optional)

This policy permits the Vault Manager to create a sub-universe of assets from the available asset universe. Once an asset whitelist is curated, the Vault Manager will only be allowed to buy in and hold any asset which is part of the contract’s whitelist.

Asset Blacklist (optional)

This policy enables the Vault Manager to create a list of assets which are not actively available for trading by the fund.

Max Concentration (optional)

This policy restricts the Vault manager from taking a position in any single asset which is greater than the percentage amount defined.