> For the complete documentation index, see [llms.txt](https://docs.miragefi.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.miragefi.org/risk/framework.md).

# Risk framework

Every material risk the venue carries, with its owner and its mitigation named.

Listing real-world assets means carrying real-world risks. The honest response is to list them, say who bears each one, and write down the mitigation. That list is this section. If a risk belongs here and is missing, that is a documentation bug; report it.

## The map

| Risk                            | Borne by                     | Mitigation                                                                      | Detail                                                   |
| ------------------------------- | ---------------------------- | ------------------------------------------------------------------------------- | -------------------------------------------------------- |
| Oracle failure or manipulation  | LPs, traders                 | The guard stack, staleness bounds, cross-checks, the band, halts                | [Oracles and market sessions](/risk/oracles.md)          |
| Weekend and overnight gaps      | LPs                          | Spread multipliers and clip reductions in the closed regime                     | [Trading regimes](/protocol/trading-regimes.md)          |
| Issuer credit and freeze rights | Anyone holding a Stock Token | Disclosure, bytecode review, tier caps, reporting of single-issuer exposure     | [Issuer risk](/risk/issuer.md)                           |
| Sequencer outage or censorship  | Traders mid-flow, LPs        | Recovery grace, forced inclusion through L1, halts                              | [Sequencer and chain risk](/risk/sequencer-and-chain.md) |
| Contract bugs                   | Everyone                     | Audits, the invariant suite, a bounty, guarded caps, minimal upgradeability     | [Security programme](/architecture/security.md)          |
| Adverse or toxic flow           | LPs                          | Inventory bands, skew pricing, one-sided quoting, clips                         | [Anchor vaults](/protocol/anchor-vaults.md)              |
| Quote-asset depeg               | Everyone                     | A native MiCA-regulated issuer; disclosed as a concentration                    | [Quote asset: USDG](/assets/usdg.md)                     |
| Parameter error                 | LPs, traders                 | The timelock, a published rationale, the band as backstop, guarded caps         | [Parameter governance](/transparency/governance.md)      |
| Maker misbehaviour              | Takers                       | Signature verification, expiry, nonces, the band, revocation of attestations    | [RFQ settlement](/protocol/rfq.md)                       |
| Regulatory change               | The venue                    | Boundary enforcement that a parameter can tighten, access gated by jurisdiction | [Compliance model](/compliance/model.md)                 |

## The band is the common backstop

The oracle band is where most of the failures above terminate. Whatever breaks upstream (a bad parameter, a compromised maker key, a misrouted quote), no fill can clear further from the last guarded oracle price than the band width. That turns a long list of tail scenarios into a bounded cost per fill, and it is what gives the guarded launch caps their meaning: worst-case exposure is a calculation, not a hope.

## What the venue does not protect against

Stating the residual plainly is part of the framework:

* **Market risk.** Buying tokenized NVDA means owning NVDA exposure. The venue prices transactions; it does not insure positions.
* **Issuer insolvency.** Tier caps and disclosure bound the exposure and make it visible; they do not eliminate it.
* **A correct oracle reporting a violent market.** Halts fire on staleness, pauses and implausible jumps, never on genuine volatility. A crash prices through the venue exactly as it prices through the underlying.

## How this section is maintained

Every incident, wherever it falls on this map, gets a published post-mortem and, where justified, a parameter or design change through the timelock. The [Lessons from RWA trading](/risk/lessons.md) page records the industry's incidents alongside this venue's answer to each; the intent is that MirageFi's own record is kept to the same standard.


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