Margin Engine
The Margin Engine is the off-chain, high-performance risk computation core of Arkis. It operates as a horizontally scalable service responsible for enforcing portfolio-level margin requirements, calculating Risk Factors, and preparing liquidation plans when thresholds are breached. While Arkis is a decentralized trading ecosystem, the Margin Engine plays a centralized but transparent role in maintaining system solvency and lender capital protection.
Core Responsibilities
Real-Time Portfolio Evaluation
Continuously monitors all active Margin Accounts (across chains).
Aggregates data on borrowed assets, collateral balances, and open protocol positions.
Calculates portfolio market value and stress-tested value based on configurable rules.
Risk Factor Computation
Calculates the Risk Factor for every Margin Account as:
Triggers margin call alerts when Risk Factor < pre-defined thresholds.
Triggers liquidation execution when Risk Factor < liquidation threshold (e.g. 1.0).
Liquidation Planning & Execution
Generates a deterministic liquidation plan.
Stress-Test Evaluation
Applies custom stress scenarios per asset class and pool.
Supports:
VaR-based simulations
Curve LP slippage models
Pendle PT maturity modeling
Stores and reuses calculated stress values for efficient re-evaluation every 30 seconds.
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