INSTITUTIONAL RISK ANALYSIS

Downside Risk,
Before It Becomes Performance

Independent stress testing and fragility analysis for funds exposed to crypto market structure.

We model what breaks first under stress—liquidity, correlations, liquidation paths, and assumptions—so your risk is explicit before markets force the conversation.

View Fund Risk Services →Rquest Custom Stress Test

Stress Scenarios

Correlated sell-offs., liquidity evaporation, oracle lag

Portfolio Fragility

Concentration, leverage, and hidden convexity

Methodology Review

Assumption audits and model failure points

Crypto Security Rests on Three Pillars

Cryptography and code prevent exploits.
Economic and liquidity integrity determine whether systems survive stress.

Cryptography & Mathematical Guarantees

What can be proven

Keys, signatures, and consensus rules define what should be secure under ideal assumptions.

This layer protects against invalid transactions — not market stress.

Code & Implementation

What can be audited

Smart contracts, protocol logic, and audits reduce implementation risk and prevent known classes of bugs.

This layer limits technical failure — not economic breakdown.

Economic & Liquidity Integrity (Frith Labs)

What fails under stress

Whether a system remains solvent, liquid, and coherent when markets move faster than assumptions.

  • Liquidity evaporates before price gaps
  • Liquidations cascade across positions and protocols
  • Solvency breaks at the protocol layer, not the asset level

Frith Labs focuses here.

We analyze economic stress, liquidity failure, and systemic fragility —before price reflects it and before losses become irreversible.

DeFi Risk, Made Explicit

We handle the heavy research—so funds and protocols get clear, independent insight into crypto market fragility and downside risk.

INSTITUTIONAL RISK

For Funds & Index Providers

Downside stress testing, portfolio fragility analysis, and methodology review designed to make risk explicit before markets force the conversation.

SYSTEMIC RISK

For Protocols & DAOs

Solvency, liquidation, and assumption-based stress tests that expose where protocol mechanics fail under correlated market stress.

How We See Risk Differently

We start from the opposite assumption: stress is when models matter, and stress breaks the assumptions most systems rely on. Our work is grounded in failure analysis, conservative inputs, and systemic interaction—designed to surface how and where risk actually materializes, not how it behaves on average.

Failure paths, not outcomes

We model how systems break under stress—not what happens if markets behave.

Worst-case liquidity, not averages

We assume exits disappear when they’re most needed.

Protocol stress, not isolated portfolios

Risk propagates through shared oracles, collateral, and incentives.

Correlation as a condition, not a parameter

In stress, independence collapses by default.

<subject>[interface] image of hr software in action (for a hr tech)</subject>Read Methodology

Deterministic Stress Testing for On-Chain Portfolios

We start from the opposite assumption: stress is when models matter, and stress breaks the assumptions most systems rely on. Our work is grounded in failure analysis, conservative inputs, and systemic interaction—designed to surface how and where risk actually materializes, not how it behaves on average.

Failure paths, not outcomes

We model how systems break under stress—not what happens if markets behave.

Worst-case liquidity, not averages

We assume exits disappear when they’re most needed.

Protocol stress, not isolated portfolios

Risk propagates through shared oracles, collateral, and incentives.

Correlation as a condition, not a parameter

In stress, independence collapses by default.

<subject>[interface] image of hr software in action (for a hr tech)</subject>Read Methodology