H20 Docs
  • H20
  • On-chain Token Economy Management
  • Non-Negotiables
  • Getting Started
  • Token Lifecycles & H20 Services
    • Token Lifecycles & H20 Services
      • Pre-Launch Phase
      • Post-Launch Phase
        • Treasury Establishment & Management
        • On-chain OTC
        • Peg Management
        • Buybacks
        • Liquidations
        • Trading
      • Vesting Phase
        • Managing Token Unlocks
      • Consolidating and Maturing Phase
        • Sustainable Self-Custody Market-Making
  • STRATEGIES
    • Auction-based DCA
    • Fixed Grid
    • Recharging Grid
    • Dynamic Spread (Single sided)
    • Dynamic Spread (Double sided)
    • Dynamic Spread (Fast or Slow Exits)
  • Case Studies
    • Profitable Market-making With Correlated Token Pairs
    • Profitable Market-making with Uncorrelated Token Pairs
    • Managing Inflation From Token Vesting
    • Turn Low Volume into High Growth with H20
    • Bootstrap Your Token with H20
    • Bring CEX-Style Trading On-Chain with H20
    • Stabilize Your Token Peg with H20
    • Capture Value from Price Run-Ups with H20
    • Transform Downtrends into Sustainable Liquidity Growth with H20
  • Security & Risk Management
    • Security Model
    • Risk Management
  • Reporting
    • Reporting
      • Example Reports
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  • No Private Key or Bot Risk
  • Technical Infrastructure
  • Transparency
  • Strategy Specific Risk Management
  1. Security & Risk Management

Risk Management

No Private Key or Bot Risk

  • Traditional: Bots require private keys exposed to the internet, vulnerable to hacks.

  • CEX: Must trust exchange with custody of funds.

  • Our Solution: 100% on-chain, no private keys in bots, self-custody maintained.

Technical Infrastructure

  • Traditional: Must maintain own servers, APIs, and monitoring systems.

  • CEX: Reliant on exchange uptime and API stability.

  • Our Solution: Runs on blockchain, no additional infrastructure needed.

Transparency

  • Traditional: Limited visibility into bot operations.

  • CEX: Opaque internal processes.

  • Our Solution: 100% transparent and verifiable on-chain.

This approach essentially removes many of the operational risks associated with traditional market making while maintaining full custody control of assets. Mathematical rules are enforced by smart contracts rather than relying on manual oversight or third-party systems.

Strategy Specific Risk Management

  • Human and system monitoring of position sizes and exposure.

  • Readjustment of orders based on accumulated positions.

  • Built-in fast exit functionality for risk mitigation during extreme market conditions.

  • Self-adjusting averages to maintain profitable spreads while providing consistent liquidity.

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Last updated 2 months ago