Risk Mitigation
YODL’s architecture is designed to make capital safety autonomous — meaning curator vault assets remain protected at all times without any manual action. The protocol continuously monitors every vault–operator pair for solvency and automatically applies the right protection measure at the right stage.
These measures operate in a predictable sequence:
Health Factor (HF) — early-warning system that tracks vault solvency in real time.
Position Rollovers — voluntary operator-initiated stabilization when risk thresholds are approached.
Bounded Liquidations — automatic, scope-limited restoration that brings the vault back to full balance.
Restoration Framework — the final layer that ensures every curator vault remains whole, even under systemic stress.
Together, these layers form YODL’s Restoration Stack — a closed, verifiable system that detects imbalance, stabilizes exposure, and deterministically restores curator principal.
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