Profit Compounding & Capital Management

4. Profit Compounding & Capital Management

MoonClaw incorporates an automated capital rotation system.

Realized Gain Handling

Upon profitable exits:

• Gains may convert to USDC

• Gains may remain in ETH

• Gains may be partially recycled into new opportunities

Stable Preservation Mode

Users can enable conservative compounding:

• Portion of profits locked into stables

• Reduced reallocation during volatile conditions

• Risk scaling based on drawdown performance

Drawdown Sensitivity Controls

If the agent experiences consecutive losses:

• Position sizes may shrink

• Aggressiveness parameters adjust

• New entries may pause temporarily

This creates adaptive capital preservation behavior.