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The monitor judges every lot on cadence and emits one of: EXIT · DELEVERAGE · ROTATE · HOLD.

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What it checks

  • Beats the hurdle? Net APY must clear the hurdle rate (default ~12% fiat-equivalent, ~5.5% crypto-only). Below it → ROTATE or EXIT.
  • Spread still positive? Multiply earns the spread between collateral yield and borrow cost. If the spread inverts, the position bleeds → DELEVERAGE / EXIT.
  • Buffer vs downside. The liquidation buffer is compared to a predicted downside derived from the market-temperature read:
Market tempPredicted downside
risk-off (≤ −0.25)~15%
cool (≤ −0.08)~8%
neutral / warm / risk-onnone
If predicted downside approaches the buffer → DELEVERAGE before liquidation can happen.

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The unification

The same risk-off signal that gates new trades also sizes the vault’s liquidation watch. One market read protects both the entry and the yield. Watch the vault the way you watch a trade.