# Treasury & Risk Management ### Protocol Treasury Predium Finance applies risk management practices and maintains a treasury wallet, which we replenish on a regular basis, and in case of emergencies - under certain conditions - we may use the treasury balance to cover critical situations. The Predium Finance Treasury serves as the core liquidity provider and risk management mechanism for the platform. #### Treasury Functions * Risk Buffering: Absorbs edge cases and extreme market movements * Growth Reserve: Funds for platform development and expansion * Insurance Pool: Protection against oracle failures or extreme events #### Treasury Health Predium Finance maintains a high reserve ratio to ensure: * All user funds are always withdrawable * Platform can settle all open positions * Extreme market conditions don't affect user security * Long-term sustainability of the protocol #### Risk Management Framework. Position Sizing Limits To protect against excessive risk exposure: * Maximum Position Size: $100 per trade * Maximum Concurrent Positions: 5 open positions * Minimum Position Size: $1 per trade * Position Isolation: Each position has independent risk exposure ### Profit Distribution Model #### How Returns are Calculated When you win a prediction: depending on the payout multiplier you get your crypto earnings + stake amount. The total sum gets credited to your balance. #### When you lose a prediction: * Your stake is allocated to Predium’s liquidity pool used for payouts and settlement * No additional fees are charged * You can immediately open new positions * Previous losses don't affect future trading --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://predium-finance.gitbook.io/predium.docs/treasury-and-risk-management.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.