[Feature]: Advanced Risk Management and Position Monitoring Engine

[akargi]

Problem / motivation

The platform lacks sophisticated risk monitoring for traders and liquidity providers. Without real-time risk metrics, traders cannot manage exposure, LPs cannot identify impermanent loss scenarios, and the platform cannot prevent cascading failures from bad debt.

Proposed solution

Build a comprehensive risk management engine:

1. Real-Time Risk Metrics Calculator:

   • Portfolio value at risk (VaR) at 95% and 99% confidence levels
   • Greeks (Delta, Gamma, Vega) for positions
   • Correlation matrix between holdings
   • Liquidity risk assessment

2. Position Monitoring Module:

   • Real-time tracking of open positions across pools and wallets
   • Automated alerts for risk threshold breaches
   • Impermanent loss tracking for LPs
   • Concentration risk warnings

3. Liquidation Risk Detector:

   • Predicts liquidation prices for leveraged positions
   • Identifies cascading liquidation scenarios
   • Triggers preventive actions

4. Counterparty Risk Assessment:

   • Tracks exposure to specific addresses/contracts
   • Identifies concentration in single pools
   • Monitors smart contract risk factors

5. Stress Testing Framework:

   • Simulates portfolio performance under market shocks
   • Tests recovery from liquidity crunches
   • Validates risk models against historical scenarios

6. Risk Reporting Dashboard:

   • Daily risk summaries
   • Historical risk trend analysis
   • Comparative benchmarking

Acceptance Criteria:

• Calculate VaR for portfolios of 100+ assets in < 500ms
• Detect liquidation risks within 1 block confirmation
• Support custom risk thresholds and alerts
• Generate risk reports in JSON/PDF formats

Related area

Cross-cutting / infrastructure

Alternatives considered

1. Manual risk tracking - impractical for active traders
2. External risk service dependency - introduces single point of failure

Contribution

• I am willing to help implement this feature.

[bobo-24]

Hi! I came across this issue and would love to work on it. I have experience with similar tasks and I'm confident I can investigate, implement a clean solution, and thoroughly test it before submitting a PR. If the issue is still open, I would appreciate it if you could assign it to me. I’ll prioritize this immediately and ensure a reliable solution is delivered as soon as possible. Thank you!