HadiAlizade77/validate-risk

Validate Risk Governor

Validate risk check: $ARGUMENTS

Risk Governor Location

• packages/backend/src/services/risk/governor.ts
• packages/backend/src/services/risk/checks/
• Tests: packages/backend/tests/unit/risk/

The 16 Risk Checks (in order)

1. global_enabled — system on/off
2. paper_trade_mode — log but don't execute
3. kill_switch — manual or auto kill triggered
4. daily_drawdown — today's loss vs limit
5. consecutive_losses — loss streak vs limit
6. max_exposure — total exposure vs limit
7. max_position_market — per-market position size
8. max_position_category — per-category exposure
9. min_edge — edge > min_edge_multiple x cost
10. min_liquidity — market liquidity threshold
11. max_spread — bid-ask spread threshold
12. cooldown — time since last loss
13. latency — API latency threshold
14. trade_rate — trades per hour limit
15. category_enabled — category trading allowed
16. strategy_enabled — strategy enabled

Validation Checklist

1. Read the risk check implementation
2. Read corresponding unit tests
3. Verify:
   • [ ] Check returns correct pass/fail for boundary values (exactly at limit, just above, just below)
   • [ ] Check short-circuits correctly (fails fast in pipeline)
   • [ ] Veto reason is descriptive and logged to risk_events
   • [ ] Config is read from risk_config table (not hardcoded)
   • [ ] Per-scope overrides work (global → category → strategy → market)
   • [ ] Kill switch cannot be bypassed
   • [ ] Concurrent access is safe
4. Run risk tests:

   cd packages/backend && npx vitest run tests/unit/risk/ --reporter=verbose
   

5. Report any gaps in test coverage

Safety Rule

The risk governor is safety-critical code. Every change must have:

• Unit tests for the exact change
• Boundary value tests
• Integration test showing the full signal → risk check → veto/approve pipeline