Position Limit
A position limit caps how much exposure an account, market, or protocol can take under defined rules.
Category
DeFi Risk Limits
These terms explain risk-control mechanics that protocols may use to manage exposures and orderly liquidations.
How to recognize this theme
Controls used to reduce protocol exposure when borrowing, collateral, or markets change.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Collateral Haircut
A collateral haircut reduces the counted value of collateral to reflect liquidity, volatility, or operational risk.
Liquidation Queue
A liquidation queue is the ordered process or priority list used when undercollateralized positions need to be reduced.
Circuit Breaker
A circuit breaker is a rule that can pause or limit activity when a market, protocol, or system hits defined stress conditions.