> For the complete documentation index, see [llms.txt](https://docs.midas.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.midas.app/investment-risk-management/strategy-rules.md). # Strategy Rules Products are managed and monitored by appointed strategy managers. We enforce a strict separation of powers between asset safeguarding and portfolio management. While appointed strategy managers are responsible for ongoing portfolio composition, capital deployment, and performance, they operate within clear boundaries to which Midas, ultimately, holds the keys. This structure ensures that strategy managers can efficiently execute their specific strategies without ever possessing unilateral control or discretionary withdrawal rights over the assets. The operational parameters of every strategy manager are strictly defined by Strategy Management Agreements which legally bind them to specific strategy rules. The strategy rules define the permitted investment universe and risk parameters, including liquidity thresholds, leverage limits, asset and counterparty concentration limits, protocol and exchange exposure caps, blacklist restrictions, and required screening and risk management standards. #### Strategy Manager Selection Process Before an Strategy Manager is granted authority to manage a Portfolio, they must undergo a rigorous vetting process to ensure they meet the following standards: * **Legal & Regulatory Standing:** Every manager must represent and warrant that they hold all necessary authorizations, licenses, and registrations required under Applicable Law to perform strategy management activities. * **"Skin in the Game":** To ensure alignment of interests, Strategy Managers may be required to establish and maintain a Minimum Investment in the strategy. * **Compliance & AML:** Managers must maintain anti-money laundering (AML) and anti-terrorism policies according to the standards required by the applicable AML regime. * **Operational Integrity:** Managers must provide evidence of professional indemnity insurance and prove that they maintain robust internal operational safeguards and risk management procedures. #### Approval Policies & Whitelisting Midas employs technical and operational "guardrails" that prevent any single Party from acting unilaterally: * **Workspace:** All strategy execution occurs within a designated MPC Workspace. This Workspace is configured to require authorization for transactions. * **Approver Quorum:** Transactions are only satisfied when the Approver Quorum is met. It is a combination of Strategy Manager Signers who initiate the transaction and Midas Signers who must approve it. Policies and whitelists can only be modified with Approver Quorum. * **Whitelisting:** Strategy Managers are restricted to executing transactions only included in a pre-approved Whitelist. * **Strict Control over Destinations:** Midas maintains exclusive control over the Whitelist. If a manager requires a new destination address, it must be submitted for review and may only be used after formal approval. #### Dual Risk Management Risk management is a shared responsibility where discretionary strategy meets institutional oversight: * **Discretion vs. Safekeeping:** While the Strategy Manager has discretionary authority to manage the Portfolio, they never acquire title to or custody of any assets. Assets always remain the property of Midas and are held in designated accounts or wallets. * **Continuous Monitoring:** Managers must deliver comprehensive reports. These reports include asset allocation breakdowns, crystallised yields, and confirmations of compliance with Strategy Rules. * **Emergency Intervention:** Midas retains the right to issue "Emergency Instructions" in the event of a security incident, protocol or oracle failure. Upon receipt of such instructions, the Strategy Manager must immediately halt transactions, unwind positions, or move assets to stablecoins to prioritize loss containment. * **Protocol Tiering:** Risk is further mitigated by strict exposure caps based on protocol maturity. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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