Azuro Protocol
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Risk Management

Liquidity pool risk management
Risk
Solution
Description
The liquidity pools incurring loss in specific events
Diversification of liquidity across a wide range of events
Liquidity is distributed between all the listed events thus dissolving the risk of loss in a specific event. The embedded margin in odds provides the LP a probability of 99.9% to earn a profit after just 1600 bets on the protocol.
An abnormal oversize bet may put the pool at risk
Slippage mechanics
Oversize bets exceeding 1/50 of the liquidity pool result in accelerated slippage of odds achieved through a progressive increase of the protocol’s margin. This neutralizes oversize bets as they become expensive and prevent users from making the gains they want.
Match Fixing
Relevant Data import and Dispute resolution
Azuro Protocol has partnered with Federbet to obtain data about suspicious games. Federbet will deliver such information via oracles. The data will serve as the basis for a dispute resolution process where the DAO will decide whether to take action or not.