The protocol limits the Vault's exposure with rules, not hedging. None of them removes that exposure.

• Price buffer and asymmetric deduction on every winning close; see Settlement.
• Position and open-interest limits per market; see Positions. Caps are contract parameters changed only through governance.
• Liquidation about 5 basis points before a position's equity reaches zero.
• Price validation. The contract rejects a bad signature, a zero price, crossed bid and ask, or a stale or out-of-order signed price. There is no price-deviation circuit breaker.
• Market pause when neither oracle has a valid price; see Prices.
• Pause. The pause guardian can stop new position openings across all markets. Closing and liquidation continue. Only the owner can resume.
• Delisting. The pause guardian can permanently delist a market: its bid and ask are frozen, positions can only be closed or liquidated at the frozen price, and the delisting cannot be reversed.
• Deposit and redemption pricing that protects existing holders: a liquidation sweep before deposits, and the lower of two equity-per-share values for redemptions.