> For the complete documentation index, see [llms.txt](https://dirac-finance.gitbook.io/dirac-finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://dirac-finance.gitbook.io/dirac-finance/execution-and-risk-management.md).

# Execution and Risk Management

Execution and risk management are core components of the Dirac infrastructure.

Curators define how capital is allocated across approved venues and yield sources, within the parameters supported by each strategy and integration. They can set allocation limits, exposure constraints, liquidity requirements, and other risk parameters according to their mandate.

Dirac provides the execution and integration infrastructure required to implement these decisions across the underlying protocols and venues.

For strategies requiring active management, execution logic can include rebalancing, funding-rate controls, liquidation monitoring, position adjustments, and coordinated unwinds. These mechanisms are defined according to the specific structure of each strategy.

Risk management therefore combines three layers:

**Strategy and integration risk** through the underlying protocols, venues, assets, and execution mechanisms.

**Curator risk management** through strategy selection, allocation decisions, limits, and ongoing vault management.

**Infrastructure controls** through the execution logic and permissions implemented by Dirac.

This structure keeps risk parameters explicit and gives curators direct control over how strategies are deployed and managed.