♟️Derisk module

Derisk module is part of the Risk Management toolkit in Apescreener and interacts with other modules within our ecosystem.

Derisk panel

From the beginning of use, after the user has configured their Strategy (see 🔮Settings), the default parameters in the draw panel will be set to the parameters that are linked to your investor profile.

Please note that auto/manual derisk orders are individual for each token and require user configuration.

1. Feeling

This parameter acts as a “basic mode”, and it is a predefined multiplier that is applied on top of the investor profile parameters. Setting this value overrides the rest of the parameters.

Uncertain will sets the safest parameters, in which the position is derisked earlier. Bullish and Extremely Bullish sets the derisk later.

2. Trailed Derisk

This parameter helps avoid premature take profits but needs proper configuration, considering the asset’s volatility, LP ratios, MC, and other factors.

If the price continues to rise after passing the derisking zone, the take profit will only trigger when the difference between the highest and current price exceeds the tolerance. For example, with a volatility tolerance of 20%, if a token has reached a price of $1, take profit triggers when the price difference is $0.8. (20% deviation from $1).

3. Min. Derisk

By setting "min.derisk" value user selects the minimum multiplier of a position in which derisking will be triggered.

For example, with a value of 2, derisking will be triggered at a minimum of 2X (or 200%) from the purchase price, 3 — at 3X, and so on.

The settings of this parameter should be approached taking into account the influence of the Feeling and Trailed Derisk variables.

4. Stop Loss

Stop Loss is used to limit potential losses by automatically selling an asset when its price falls to a predetermined level. This order is set up to protect the user from significant losses during sudden market drops. For example, if you set a stop loss at 50% below the purchase price of your asset, it will automatically be sold if its price decreases by that amount, helping to minimize further losses.

• On/off

Stop Loss is an additional parameter that can always be turned off or on as necessary.

5. Take Profit

This parameter indicates how much of the profit of a position will be taken on a derisking event. 0% being that the principal is recovered, and all the profits are still in the position. And 100% means that the complete position is closed.

For example, if you invest $100 and the position does 2x, these are the scenarios depending on this parameter:

6. Auto-derisk

The difference between auto and manual derisking is that auto derisking is triggered automatically as soon as the minimum parameters specified in the Derisk order settings are reached.

For the Auto-derisk function to work, the user will need to grant access to the selected token via Approve.

The Derisk contract is currently under audit and the results of the audit/github summary will be published later.

• On/off

If auto derisk is disabled, the user will have to perform derisking action manually after receiving a notification.

Confirm

Before configuration, all settings summaries and strategy calculations are displayed in text for verification and possible fine-tuning if necessary.

Сlick "Confirm" to activate your Derisk order.

Pending Orders

In our next updates, users will be able to see the list of Pending derisk orders in a separate section.