The nine rules

Every order that opens or grows a position passes nine rules, in this order. The first refusal wins. If nothing refuses, the smallest allowed size wins. Orders that reduce or close a position pass without a check: exits are never blocked.

Where the rules live today:

• Engine rules are zunder-risk’s RiskEngine, the code Zunder trades with on testnet. The website runs the same code, compiled to WebAssembly (crates/zunder-risk-wasm).
• Policy rules are not in the engine. Today they exist in the website’s judge (crates/zunder-risk-wasm/src/judge.rs). In Guard they will live in the policy file.

Planned

The website’s judge and the WebAssembly build are being built in parallel with these docs. Guard’s policy file is planned for Guard 1.0. The engine rules (c, e, g, h, i) are true today.

Your rules

Rule	Your setting
Max leverage	5x
Max loss at the stop	2%
Without a stop	Guard sets one, 2% away
Min distance to liquidation	10%
Max position size	200% of equity
Max open risk	6%
Daily loss stop	6%
Drawdown halt	25%
Markets	all

In the tables below, E is account equity and percentages are fractions of it. In the config, fractions are written as fractions: 0.02 means 2%. In a rules code, they are written as percent: 2 means 2%.

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(a) Market allowlist

Definition. An entry in a coin that is not on your list is refused.

Formula	coin ∈ markets, or the list is “all”
Default	all markets
Bounds	at most 1,000 coins
Refusal	coin_not_allowed
Lives in	policy (SiteRules::allowed_coins)

Example. Your list is BTC and ETH. A bot buys HYPE. Refused: “HYPE is not on the market allowlist”.

Backtest: judged. Watch: judged.

(b) Protective stop

Definition. Every entry needs a stop that protects the whole position on the venue. If the bot sends none, Guard sets one defaultStopDistancePct away from the entry and sizes the order from it (stopPolicy = attach, the default), or refuses the entry (stopPolicy = refuse). A stop counts if it is a stop trigger order (not a take-profit) on the closing side, reduce-only or attached to the position, below the price for a long (above for a short), and together with other stops covers the whole position size. Of several, the loosest counts.

Formula	stop exists ∧ stop on the losing side ∧ Σ stop sizes ≥ position size
Default	stopPolicy = attach, stop 2% away
Bounds	attach or refuse; the attached stop 0.1% to 25% away
Refusal	no_protective_stop (refuse policy only)
Lives in	policy; Zunder’s Session enforces the same for its own bot (every position gets a stop on the venue, or is closed at once)

Planned

In Guard itself, attaching the stop is part of the proxy, which is being built. The website’s judge already applies both policies.

Example. A bot buys 1 ETH and places no stop. With the default, Guard sets a stop 2% below the entry and sizes the order so the loss there is your max loss at the stop. With stopPolicy = refuse: refused, “no stop order protects the ETH position”.

Backtest: judged from the account’s order history. A stop placed up to 60 s after the entry still counts (a bot places it once the entry fills). Entries older than the order history are kept as traded, not judged. Watch: judged; a stop placed up to 5 s after the fill counts.

(c) Max leverage

Definition. The value of all open positions plus the new entry may be at most max_leverage times equity. This is exposure, not Hyperliquid’s margin setting: a 3x position next to a 4x position is 7x here.

Formula	open value + entry quantity × entry price ≤ E × max_leverage
Default	5
Bounds	above 0, at most 100
Outcome	resize, or leverage_exhausted when no room is left
Lives in	engine (RiskEngine::size_entry)

Example. Equity 2,000, positions worth 9,000. Room left: 2,000 × 5 − 9,000 = 1,000. A buy worth 3,000 is cut to 1,000.

Backtest: judged; other positions are valued at the last fill price seen in their coin. Watch: judged from the account’s live positions.

(d) Minimum distance to liquidation

Definition. After the trade, the liquidation price must be at least this far from the trade price.

Formula	|price − liquidation price| / price ≥ min_liquidation_distance
Default	10%
Bounds	0 (off) up to, but not including, 100%
Refusal	liquidation_too_close
Lives in	policy

No liquidation price passes: Hyperliquid reports none when a position cannot be liquidated at any positive price.

Example. A long at 100 with liquidation at 93 is 7% away. Refused: “liquidation is 7% from the price; the minimum is 10%”.

Backtest: not judged. Past liquidation prices are not in the public history. Watch: judged, from the liquidation price Hyperliquid reports after the trade.

Planned

Guard has to judge this before the order exists, so it must compute the liquidation price itself. Zunder’s own session already does something stronger for its bot: every perp entry is put on isolated margin at a leverage that places liquidation beyond the stop’s worst fill, with 10% of that distance and 5% of the price to spare (isolated_leverage in crates/zunder-exec/src/session.rs).

(e) Max open risk

Definition. All stops together may lose at most this share of equity, the new entry included. A position without a stop has unbounded risk, so nothing new opens next to it.

Formula	Σ qty × |price − stop| over open positions + entry risk ≤ E × max_open_risk
Default	6%
Bounds	above 0, at most 100%; never below max loss at the stop
Outcome	resize, or open_risk_exhausted; unprotected_position when a position has no stop or its price is at or through it
Lives in	engine (RiskEngine::size_entry, combined_exposure)

Example. Equity 2,000, open stops risk 100. Budget left: 120 − 100 = 20. A trade that would risk 40 is halved (Example 2).

Backtest: judged. Watch: judged; an account-level warning fires when open risk is already over the cap.

(f) Max position size

Definition. One coin’s whole position, after the trade, may be worth at most this multiple of equity.

Formula	(held quantity + entry quantity) × price ≤ E × max_position_fraction
Default	200% (2× equity)
Bounds	above 0, at most 10,000% (100×)
Outcome	resize; position_cap_reached when the room left is below the venue’s minimum order
Lives in	policy

Example. Equity 2,000, cap 200%: at most 4,000 in one coin. Holding 3,500 of SOL, a buy of 1,000 is cut to 500.

Backtest: judged. Watch: judged.

(g) Max loss at the stop

Definition. If the stop is hit, this trade may lose at most this share of equity, round-trip costs included. This is the rule that sizes most trades.

Formula	quantity × (|entry − stop| + round-trip cost per unit) ≤ E × risk_per_trade
Default	2%
Bounds	above 0, at most 100%; at most max open risk
Outcome	resize; stop_on_wrong_side, below_minimum
Lives in	engine (RiskEngine::size_entry)

The round-trip cost defaults to 12 basis points of the price (why), bounded to 0–500.

Example. Example 1 on Sizing: 0.5 BTC becomes 0.03144 BTC.

Backtest: judged where the entry had a stop. Without a stop, rule (b) decides first. Watch: judged.

(h) Daily loss stop

Definition. Once today’s loss reaches this share of the equity at the start of the UTC day, no entry opens until the next UTC day.

Formula	(day start − equity) / day start ≥ daily_loss_stop (with an equity cap: divided by min(day start, cap))
Default	6%
Bounds	above 0, at most 100%
Refusal	halted_for_day
Lives in	engine (RiskEngine::observe)

Details and examples: Daily loss stop and drawdown halt.

Backtest: judged on realised equity (closed PnL, fees, funding); an open loss counts when the trade closes. Watch: judged from Hyperliquid’s PnL history, read every five minutes.

(i) Drawdown halt

Definition. Once equity has fallen this far below its peak, no entry opens until a person has reviewed and resumed.

Formula	(peak − equity) / peak ≥ drawdown_stop (with a cap: divided by min(peak, cap))
Default	25%
Bounds	above 0, at most 100%
Refusal	stopped
Lives in	engine (RiskEngine::observe, resume_after_review)

Backtest: judged on realised equity; once halted, the guarded account opens nothing again. Watch: judged from the PnL history.

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What no browser tool can judge

Two of Guard’s promises cannot be seen from outside:

• Stops only tighten. A public account can loosen its own stops; Backtest and Watch show the result, not a refusal.
• Only a person resumes. A public account just keeps trading.

Deposits and withdrawals are left out of the equity history in both tools, so a withdrawal does not look like a loss.

Where the bounds come from

The bounds are what validate() accepts (RiskLimits::validate in crates/zunder-risk/src/limits.rs, SiteRules::validate in judge.rs). They stop nonsense such as 25 instead of 0.25. They are not advice: a 100% loss at the stop is a valid setting and a bad idea.