Capital protection is a system function, not a promise
Limits are set by humans and enforced by the system. No trader and no strategy can raise its own risk limits.
Risk Domains
Per instrument, per venue and portfolio-level notional and delta caps enforced pre-trade and in real time.
One-day and ten-day VaR at 99% confidence, with utilisation measured against board-approved ceilings.
Exit-horizon modelling against venue depth so positions remain closeable under stress.
Single-asset, single-venue and single-strategy concentration monitored continuously.
Venue exposure caps, tiering and balance recall triggers where exposure exceeds mandate.
Daily, weekly and peak-to-trough drawdown thresholds that suspend new exposure automatically.
Escalation Ladder
- Soft warning at 60% limit utilisation
- Hard warning and sizing throttle at 80%
- Automatic strategy stop at the daily loss threshold
- System-wide suspension of new trading
- Separately protected emergency kill switch
- Board and CRO notification on every breach
- Immutable breach record with action taken
- Post-event review before limits are restored
Boundary
Risk controls protect company capital. There is no client capital, client margin or client liquidation inside SCOSDesk.