Risk Manager

The Risk Manager is responsible for aligning trading and investment strategies with the user's evolving risk tolerance. It dynamically assesses both external protocol-level risks and user-specific preferences to generate risk-adjusted portfolio allocations and trade recommendations.

The subsystem consists of two core components:

• Risk Evaluator – Continuously monitors the risk profiles of DeFi protocols, trading strategies, and asset classes via Information Synthesizer and Quant Analyzer. It accounts for factors such as protocol exploit history, liquidity volatility, impermanent loss, leverage exposure, and systemic risk indicators. The evaluator outputs quantitative risk scores used to filter or reweight strategy options.

• User Preference Agent – Periodically scans user interactions (e.g., chat history, strategy feedback, manual overrides) to infer the user's implicit and explicit risk preferences. It maintains a dynamic user risk profile that captures trends such as increased risk aversion or growing appetite for yield-seeking behavior.

By combining protocol-level risk signals with personalized user risk assessments, the Risk Manager tailors strategy generation across Synthia's multi-agent ecosystem. It ensures that strategy optimization, portfolio recommendation, and asset allocation remain aligned with both market conditions and the user's individual risk appetite.