Overview

Risk management at Shift is a continuous, proactive process designed to minimize potential losses after identifying key threats. In DeFi, this isn’t optional – blockchain activity happens in real time, liquidity can disappear in seconds, and protocol decisions (like DAO votes or code upgrades) can go live with no regulatory pause.

A one-time audit before launch just isn’t enough anymore. Portfolios need systems that watch the market 24/7, detect red flags instantly, and act before problems escalate.

Shift’s risk management process is built around the second part of its Risk assessment and management framework. It combines multiple layers: diversification, defined operational processes, real-time monitoring and triggers, on-chain emergency exits, periodic strategy reshuffling, and integrations with external security providers.

This creates a dynamic, always-on risk system that follows a clear cycle:

detect → alert → contain the risk → recover and rebalance.