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

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