Risk Management

Risk Management

Beans integrates robust risk management features to help safeguard your investments. However, due to the high-leverage nature of our platform and the 99% Loan-to-Value (LTV) option, it’s crucial to fully understand the inherent risks before engaging in any trading activity.

Health Factor Monitoring

Stay informed about the stability of your open positions in real time. A dedicated Health Factor metric helps you quickly identify when your leverage or borrowed amount might be approaching critical levels.

  • Instant Alerts: Receive notifications if your Health Factor dips below recommended thresholds.
  • Detailed Visualization: A visual gauge highlights current and projected safety margins.

Liquidation Price Indicators

To reduce the chance of unexpected liquidations, Beans provides clear indicators that pinpoint where your position could be forcibly closed:

  • Real-Time Updates: Indicators adjust as market prices move, giving you up-to-the-second clarity.
  • User-Defined Alerts: Configure alerts to notify you if your position nears its liquidation point.
  • Take-Profit Targets: Lock in gains by setting take-profit targets in your leverage positions, ensuring you can exit automatically when your desired profit level is reached.

Position Size Limits

While Beans offers high leverage (starting at 100x) and up to 99% LTV, certain predefined position limits help control systemic risk.

  • Exposure Caps: You can’t exceed certain size limits, preventing overextension in illiquid markets.
  • Flexible Adjustments: You can scale up or down your position sizes within set boundaries, allowing you to manage your exposure dynamically.

Automated Risk Warnings

When market volatility spikes, an automated risk-warning system kicks in to alert users of heightened conditions:

  • Threshold-Based Alerts: Receive warnings if price swings surpass preset levels.
  • Historical Volatility Insights: Access data on past fluctuations to better anticipate potential drawdowns.

Price Impact Notifications

Before confirming a trade, Beans calculates how much price slippage or impact your order could incur:

  • Real-Time Calculation: If your transaction volume is large relative to available liquidity, you’ll see an immediate warning.
  • Slippage Controls: Adjust your slippage tolerance in the settings to help mitigate unwanted execution outcomes.

Disclaimer & Best Practices

Not Financial Advice
Trading in DeFi carries significant risk. Prices are not supported by any centralized entity, and you should only participate with funds you can afford to lose. There is no guarantee of price appreciation or long-term stability.

  • Volatility: High-leverage, 99% LTV borrowing, and rapidly shifting markets can result in steep losses if not managed carefully.
  • Self-Education: Familiarize yourself with leverage mechanics, interest rates, and liquidation procedures.
  • Due Diligence: Thoroughly research market conditions, underlying assets, and project fundamentals before committing capital.
  • Diversify: Consider spreading your investments to reduce concentration risk.

By combining Health Factor Monitoring, Liquidation Indicators, Position Size Limits, and Automated Risk Warnings, Beans provides a transparent framework that helps you monitor and manage the risks inherent to high-leverage DeFi trading. Ultimately, responsible usage of these tools—along with ongoing education—remains the best line of defense against potential losses.