The Adaptive Risk Engine is the layer between an agent's intent ("protect this position") and the actual stop-loss, profit-target, and trailing math that gets enforced on a live broker account. It splits risk into two tiers so users always have a predictable floor while still benefiting from context-aware adjustments.

    Platform

    Adaptive Risk Engine

    The Adaptive Risk Engine is the layer between an agent's intent ("protect this position") and the actual stop-loss, profit-target, and trailing math that gets enforced on a live broker account. It splits risk into two tiers so users always have a predictable floor while still benefiting from context-aware adjustments.

    Quick definition

    Treeova's two-tier risk protection model combining deterministic Standard guardrails with a context-modulated Adaptive trailing tier. Agents pull levers; platform code performs all risk arithmetic.

    The two-tier model

    The Standard tier is fully deterministic: fixed stop percentages, fixed profit targets, no surprises. The Adaptive tier sits on top and can tighten trails as a position moves into profit, widen them across high-IV regimes, or lock in gains as Theta accelerates near expiration. Standard always wins ties — Adaptive can never loosen a guard that Standard set.

    Why agents don't do the math themselves

    Treeova deliberately keeps risk arithmetic in platform code, not in agent prompts. Agents pull labeled levers ("throttle", "trail aggressiveness", "DTE divisor") and the engine translates them into hard numbers. This eliminates the entire class of bugs where an LLM hallucinates a stop price or forgets to account for contract multiplier.

    Where it integrates

    Every fill — paper or live — passes through risk assignment before becoming a managed position. The engine then re-evaluates on every monitor tick using the agent's current conviction score from Arch-AGI, the position's unrealized P&L, time-to-expiry, and broader market regime data from the Market Intelligence Super-Swarm.

    Go deeper

    The full technical methodology behind Adaptive Risk Engine is documented in the Treeova whitepaper series.

    Read the Adaptive Risk Engine whitepaper →

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