Drawdown Cap
A drawdown cap limits how much loss or decline is allowed before action is taken.
Category
Risk Controls
These terms cover loss limits, exposure caps, liquidation protection, and execution guardrails.
How to recognize this theme
Words for caps and buffers that limit downside and operational stress.
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.
Exposure Limit
An exposure limit sets the maximum amount of capital or risk that can be put at stake.
Liquidation Buffer
A liquidation buffer is extra margin that helps absorb losses before forced closure.
Slippage Cap
A slippage cap sets the maximum allowed gap between expected and filled price.