Risk Management

Risk management rules make the protocol resistant to market movements and correctly executing the positions.

Open Interest Limit

Open Interest Limit is setting limits on the total open interest for each trading pair relative to the ReHold's vault or reserve. These limits help prevent an imbalance in open interest that could strain the exchange's ability to cover trading PnL and settlements.

Profit Limit

A profit limit is a mechanism to protect the protocol due to extreme market conditions or price glitches. It sets a threshold beyond which a trader's profit cannot raise. If a trader's profit breaches this limit, a position can be immediately closed, and the trader will receive the full profit amount.