The risk engine, rule by rule

Most people who lose money trading crypto don't lose it on entries. They lose it on position sizes that drift, stops that never move, and a book that's really one bet wearing five tickers. AXIO's second job — the one it's really built for — is taking that off your hands with rules you can audit.

Sizing is derived, never guessed

Every position is sized so that the distance from entry to its stop-loss represents a small, fixed fraction of account equity — on the order of three-quarters of one percent. A wide stop means a smaller position; a tight stop means a larger one. The dollar amount at risk is roughly constant regardless of which asset it is or how volatile it is. That risk figure — (entry − stop) × quantity — is what "return on risk" on your Performance page divides by, so the number means something specific.

Circuit breakers

Account-level breakers stop new risk from being opened when the account is having a bad run. They never touch an existing position — a tripped breaker still lets AXIO manage, trail and close what's already open:

• •Daily loss — realised losses past a set percentage of equity in one day freeze new entries until the next day.
• •Weekly loss — a larger threshold over a rolling week.
• •Drawdown kill — if equity falls a set percentage below its all-time high-water mark, automated entries halt until a human clears it. Not a timer — a person.
• •Loss streak — a run of consecutive losing closes triggers a short cooldown.

Concentration and correlation caps

A per-sector cap limits how much of the book can sit in one asset category (Layer 1s, DeFi, payments, and so on). A correlation check flags when a candidate moves almost in lockstep with something you already hold, because five correlated longs is one position with extra fees. The automated path obeys these; a manual approver can override the soft ones deliberately.

One gate

Every automated entry passes through a single check that runs all of the above — breakers, the bear-market freeze, the slot count for that environment, portfolio exposure, the regime envelope and the cluster caps — before a position is opened. If any hard rule blocks it, the trade doesn't happen and the reason is written to your activity log.

The point of making these rules fixed and visible is that you can check them. They are the same for every account and they don't move.