> For the complete documentation index, see [llms.txt](https://docs.deryve.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.deryve.xyz/ai-agent/risk-engine.md).

# Risk engine

The risk engine is the final boundary before an agent proposal can execute. It cannot be bypassed by a model or custom instruction.

### Hard controls

The engine checks position size, leverage, permitted symbols, daily realized losses, open-position count, stop-loss requirements, stop direction, liquidation distance, stock leverage, and price-data freshness.

| Outcome         | Effect                                    |
| --------------- | ----------------------------------------- |
| Approve         | Executes the valid proposal               |
| Adjust size     | Reduces size to the configured maximum    |
| Adjust leverage | Reduces leverage to the allowed maximum   |
| Block           | Prevents execution and records the reason |

### Risk styles

**Conservative** reduces requested size and raises effective selectivity. **Balanced** applies configured limits normally. **Aggressive** permits the configured maximum, but never exceeds hard caps.

### Daily loss limit

The agent pauses after cumulative realized losses reach your configured daily limit. It does not guarantee protection from unrealized losses, slippage, funding, or gaps.

### Data freshness

The engine rejects stale market data. Trading decisions require timely market inputs, especially during fast volatility.


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