Continuously manages Binance BTCUSDT and ETHUSDT event contract risks by enforcing position sizing, daily loss limits, exposure caps, and emergency circuit b...
Trigger Timing: Active continuously; validates every signal before execution; also supports manual trigger via /binance-risk-check; 24/7
Core Intent: Provide comprehensive risk control for all signal executions; calculate position size, exposure, daily loss limit, and emergency circuit breaker; ensure no single trade risks more than 2% of capital
Context: Applies to BTCUSDT & ETHUSDT Event Contracts; enforces Binance Event Contract rules (5-250 USDT per trade, daily loss limits); monitors account exposure across all open positions
2. Goal Setting
Max position size: 5% of total capital per signal
Max risk per trade: 2% of total capital (stop loss distance Γ position)
Max daily loss: 10% of total capital (circuit breaker trigger)
Max total exposure: 20% of capital across all concurrent positions
Leverage check: Binance Event Contract leverage display only (no actual leverage used)
3. Execution Rules
3.1 Position Size Calculation
Risk Amount = Capital Γ 2%
Position Size = Risk Amount Γ· (Entry Price - Stop Loss)
Max Position (USD) = Min(Capital Γ 5%, 250 USDT) β Binance per-trade limit
Final Position = Min(Risk-based Size, Max Position)
3.2 Daily Loss Limit Rules
Track cumulative P&L each UTC day
Daily Loss β₯ 5% β Warning alert (reduce position by 50%)
Daily Loss β₯ 10% β Circuit breaker (stop new signals until next UTC day)
Recovery: Only reset after new UTC day starts
3.3 Exposure Management
Max concurrent open positions: 4 (2 per pair)
If 4 active β reject new signals until one closes
Exposure = Ξ£(all open position notional values) β€ 20% of capital
3.4 Binance Contract Rule Enforcement
Verify trade size: Min 5 USDT, Max 250 USDT per trade
Reject any signal with position size outside 5-250 USDT
Monitor contract cycle: warn if signal within 5min of expiry
3.5 Emergency Circuit Breaker
Trigger circuit breaker if ANY of:
Daily loss β₯ 10%
3 consecutive losses in same cycle
API data failure > 3 times
Price slippage > 1% from entry (reject execution)
4. Example Output
β Positive Example (Risk Approved)
γ Risk Check PASSED | BTCUSDT Long | 12:10 UTC γ
Capital: 1,000 USDT
Risk Amount (2%): 20 USDT
Position Size: 0.023 BTC (β157 USDT) β within 5-250 USDT β
Max Exposure: 200 USDT (20% of capital) β OK β
Stop Loss Distance: 0.5%
Risk/Reward: 1:2.4
Daily P&L: -2.3% β No warning β
Concurrent Positions: 2/4 β OK β
β Execution approved
β Negative Example (Risk Rejected)
γ Risk Check FAILED | ETHUSDT Short | 12:10 UTC γ
Reason: Daily loss 11.2% exceeded circuit breaker threshold
Action: ALL new signals suspended until 00:00 UTC
Recovery: Reduce position immediately or wait for reset
β οΈ CIRCUIT BREAKER TRIGGERED
5. Boundary Definition
FORBIDDEN: Approve position size > 250 USDT (Binance hard limit)
FORBIDDEN: Approve trade if daily loss β₯ 10%
FORBIDDEN: Allow more than 4 concurrent positions
FORBIDDEN: Approve trades 5 minutes before contract expiry
Exception: If circuit breaker triggered β suspend all execution, alert immediately
