Risk Assessment

Data Analysts screen any potential active strategies to be integrated into the Convex Index through a series of risk-assessments, ensuring any integrated active strategy improves the risk-adjusted performance of the index.

• Filter non-stable assets to avoid exposure to IL and volatile asset prices.

• Filter out the lowest APR listings to preserve yields

• Slippage (review of amplification coefficient)

• TVL (ensure sufficient TVL to reduce risk of sufficient exit liquidity)

• Review min volume required to reduce risk of mispricing from market inefficiency

• Review mechanics that maintain stablecoin peg with USD

• Assess exit strategies should a depeg or liquidity event arise