> For the complete documentation index, see [llms.txt](https://docs.falcon.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.falcon.finance/~/revisions/zoG40VQk1Wr5zQ5uwjmT/mechanism/risk-management.md).

# Risk Management

Risk management is a cornerstone of Falcon’s commitment to users’ asset protection. Falcon\
employs a dual-layered approach combining automated systems and manual oversight to monitor\
and manage positions actively. This double monitoring layer ensures positions are carefully evaluated and adjusted in real-time to mitigate risk. 

During periods of heightened market volatility, Falcon leverages the expertise of its advanced trading infrastructure to unwind risk strategically. This capability ensures the preservation of the user’s assets while maintaining the stability and integrity of the collateral pool.


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