# Risk Policy

## Scope

This note defines the minimum risk policy expected for any strategy package paired with PrivateDAO in a competitive or investor-facing review.

## Required controls

### 1. Drawdown limit

The submission must declare a hard maximum drawdown threshold and the operational response once breached.

Minimum expectation:

- define the threshold
- define the reduction action
- define the escalation path

### 2. Position sizing

The submission must define:

- maximum exposure per position
- maximum exposure per venue
- maximum exposure per strategy sleeve

### 3. Rebalancing

The submission must state:

- normal rebalance cadence
- what triggers an unscheduled rebalance
- which changes require governance approval

### 4. Emergency controls

The submission should explicitly state whether the system has:

- emergency stop
- emergency de-risking
- delayed execution for sensitive actions
- veto or cancel path

### 5. Verification discipline

The submission should include:

- wallet or vault address
- hackathon-window verification path
- explorer links
- code references

## Why this matters

PrivateDAO is strongest when paired with strategies that treat governance as part of the risk engine, not as an afterthought.