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FOREVER MARKETS

Risk controls

The live portfolio limits that constrain capital allocation and market growth.

2 min readUpdated Aug 27, 2026Capped beta

Current production policy

ControlLive valueEffect
Global idle buffer10%Reserved for withdrawals and rebalancing
Global deposit cap50,000,000 USDGLimits total vault growth
NVDA/AMD max weight90%Prevents full portfolio concentration
Sleeve utilization cap80%Limits reserve consumption
Drawdown breaker15%Freezes new allocation after loss
First-loss minimum2%Protocol capital sits ahead of LP loss
Allocation oracle age300 secondsBlocks allocation on stale prices

Allocation must pass every gate

  • Market is registered, enabled and Active

  • Market accounting invariant is solvent

  • Oracle is fresh

  • Absolute allocation cap is respected

  • Maximum portfolio weight is respected

  • Required reserve remains below utilization limit

  • Global idle buffer remains funded

  • First-loss bond meets policy

  • Sleeve is not circuit-broken

First-loss capital

The live NVDA/AMD sleeve has a 10 USDG first-loss bond. Bonds are held by the global vault but excluded from LP NAV until used, preventing an artificial windfall to existing shareholders.

Applying the bond is an admin-controlled recapitalization action and only works against a realized sleeve loss. It cannot be withdrawn through normal LP redemption.