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.