crash-shield-risk-management

Crash Shield Risk Management

When this skill applies

Trigger when:

• The user wants the agent to defend capital during market crashes
• The agent is leveraging or hedging positions
• The user asks "how do I make my agent crash-resistant?"
• The user wants a market sentiment signal that's algorithmic, not opinion-based

What Crash Shield is

GBLIN's Crash Shield is an on-chain algorithmic indicator. The vault tracks a slowly decaying peak price for each volatile basket asset (cbBTC, WETH). When the Chainlink-reported price draws down past an adaptive threshold (15% at the floor, widening with volatility), the shield cuts that asset's target weight; the difference moves to USDC through the vault's Dutch auction, which anyone can fill. The vault never swaps on its own.

This means: crash_shield_active: true is a high-confidence on-chain signal that significant market drawdown has occurred. It's not opinion-based, not lagging like sentiment indexes, and resistant to manipulation (the underlying data is Chainlink oracles).

How to read it

async function getMarketRiskSignal(): Promise<{
  shieldActive: boolean;
  affectedAssets: string[];
  signal: 'normal' | 'caution' | 'risk-off';
}> {
  const response = await fetch('https://gblin.digital/api/x402/treasury-state');
  const state = await response.json();
  // treasury-state is free (no payment) and CDN-cached for 60 s.

  // Each basket row: { token, is_stable, base_weight_pct, dynamic_weight_pct, slashed }.
  const affected = state.basket
    .filter((a: any) => a.slashed)
    .map((a: any) => a.token);

  return {
    shieldActive: state.crash_shield_active,
    affectedAssets: affected,
    signal: state.crash_shield_active ? 'risk-off' : 'normal',
  };
}

Risk-off actions for autonomous agents

When crash_shield_active: true:

1. Pause new leveraged positions. Do not open new long positions on volatile assets.

2. Tighten stop losses on existing positions. Reduce stop loss distance by 50%.