Risk Management Framework

3. Risk Management Framework

Memecoin markets are structurally dangerous. MoonClaw’s risk layer is one of its most critical components.

Rug Detection Heuristics

The agent screens for:

• Suspicious contract permissions

• Liquidity unlock events

• Honeypot indicators

• Abnormal minting behavior

• Dev wallet dominance

These heuristics are probabilistic, not absolute. They reduce but do not eliminate risk.

Dynamic Position Sizing

MoonClaw limits exposure per trade:

• Maximum % allocation per token

• Maximum concurrent open positions

• Risk-tiered sizing (higher risk = smaller allocation)

Stop-Loss Enforcement

The agent can:

• Trigger hard stop-loss levels

• Use trailing stop logic

• Partially exit on momentum decay

Stops execute automatically, reducing emotional bias.

Portfolio Diversification

Instead of concentrating on one token, MoonClaw can:

• Allocate across multiple trending tokens

• Balance high-risk and moderate-risk entries

• Limit correlated exposure

This helps reduce single-event catastrophic loss (though does not eliminate it).