risk-mgmt

Building an anti-fragile crypto portfolio

Diversify across factors, not just tokens

20 min · advanced

What you'll have when finished

  • Identify hidden concentrations in your portfolio
  • Stress-test against historical scenarios
  • Build a portfolio that survives black swan events

Before you start

  • Diversification reduces but does not eliminate risk
  • Correlations can break during extreme stress events

Walkthrough

  1. Run factor exposure analysis

    Open Portfolio Analytics → Factors. Look for any factor exposure >75% — that's a concentration risk.

  2. Check correlation matrix

    Two tokens with correlation >0.85 don't add diversification. Replace one with an uncorrelated asset.

  3. Run stress tests

    Test against March 2020 crash, BTC -30%, USDT depeg. If any single scenario causes >30% loss, rebalance.

  4. Rebalance toward target weights

    Set target factor weights (e.g., max 40% Layer 1, max 25% DeFi). Rebalance quarterly or when weights drift >10%.