# Risk Protection

The protocol includes robust safeguards to manage exposure and protect provider capital. Three primary layers of protection are enforced by the smart contracts:

1. **5% Daily Drawdown Limit:** Independent games are capped at withdrawing no more than 5% of the pool's daily balance. This prevents a catastrophic drain from a single day of player wins.
2. **50% Loss Threshold (Circuit Breaker):** If sustained player wins reduce the pool balance below 50% of the total expected principal, a circuit breaker automatically halts all new betting until the pool recovers.
3. **80-Week Lock:** All new liquidity provision is subject to a mandatory 80-week lock period. While rewards can be claimed at any time, this lock ensures long-term pool stability and prevents short-term "free-riding" on the house edge.


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