Risk Management

The Risk Management section explains how XCCY keeps users, LPs, and the protocol safe while maximizing capital efficiency.

XCCY’s approach is modern, on-chain, and quantitative, yet designed to be intuitive for users who don’t need to be quants.

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What This Group Covers

1. DV01 Explained

   • Learn how XCCY measures sensitivity to rate moves using the dollar value of a 1 basis point change.

   • DV01 is the foundation for risk limits, margin, and portfolio netting.

2. Isolated Margin

   • Risk is contained per asset or pool.

   • Leverage is high, liquidations are per position, and collateral is pool-specific.

3. Portfolio Margin

   • Cross-asset netting reduces collateral needs.

   • The Risk Engine dynamically adjusts exposure and default factors.

4. X-Mode (Clustered Portfolio Margin)

   • Groups highly correlated assets to maximize collateral efficiency.

   • Supports higher leverage without increasing systemic risk.

5. Account Risks

   • Holistic view of exposure across all positions, swaps, and loans.

   • Identifies liquidation thresholds, concentration, and correlated risk.

6. Collateral Management

   • Explains how different assets are valued, monitored, and used as margin.

   • Covers staking, yield-bearing assets, LSDs, and RWA token types.