Execution and Risk Management

Execution and risk management are embedded at the core of Dirac Finance.

Strategies are deployed with explicit parameters controlling exposure, rebalancing thresholds, and funding conditions. Curators define these parameters within predefined risk boundaries, directly impacting performance and drawdown profiles.

Rebalancing is handled through automated execution logic. Positions are adjusted based on market movements, funding regime changes, and risk thresholds, ensuring that strategies maintain their intended exposure over time.

Execution can rely on both DEX and CEX-like environments depending on the strategy. This enables access to deeper liquidity and more efficient pricing, while introducing additional considerations such as counterparty risk and execution latency.

Funding dynamics are a key component of several strategies. Changes in funding rates directly affect returns and can shift the risk-return profile of a deployment. These dynamics are integrated into both strategy design and deployment decisions.

Risk is not abstracted away. It is parameterized, monitored, and actively managed through execution logic and curator decisions.