> For the complete documentation index, see [llms.txt](https://rebalance.gitbook.io/rebalance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://rebalance.gitbook.io/rebalance/risk-management/risk-mitigation/risk-parameters.md).

# Risk parameters

Key risk parameters, we are checking before integration of any protocol into Rebalance strategies.

* Security Audits: Availability of independent audits from reputable firms.
* Bug Bounty Programs: Presence of reward programs for vulnerability discoveries. 
* White Hat Hackers: Interaction with the white hat hacker community and history of identified vulnerabilities.
* Development Activity: Number of commits, active developers, repository update frequency.
* Issues and Pull Requests: Number of open/closed issues, pull request handling activity.
* Test Coverage: Availability and quality of tests, code coverage.
* Documentation: Completeness and accessibility of technical and user documentation.
* Liquidity and TVL: Total value locked in the protocol and TVL trend. At least $3M over 90 days. No significant liquidity drawdowns.
* Transaction Activity: Number of transactions, transaction volume, average transaction size.
* Integration with Other Protocols: Number and volume of interactions with other DeFi protocols.
* Social Metrics: Quantity and quality of discussions on platforms like X, Reddit, Discord, Telegram.
* Community Reputation: Overall sentiment and trust in the protocol within the crypto community.
* Public Appearances and Partnerships: Presence of partnership agreements with known projects, participation in crypto conferences and other public events.
* Tokenomics: Token distribution structure, vesting mechanism, inflationary or deflationary model.
* Liquidity: Overall liquidity in the protocol, support from major market makers.
* User Activity: Number of active users, unique addresses.
* Financial Reporting: Availability and regularity of financial reports, public accessibility.
* Revenue and Expenses: Project's revenue and expense structure, funds allocated to development and marketing.
* Jurisdiction: Location of the team and project's legal structure.
* Regulatory Compliance: Level of compliance with laws and regulations, availability of legal consultations and opinions.
* Protocol Age: At least 1 year in the market.<br>