Binance Event Contract Risk Manager

Continuously manages Binance BTCUSDT and ETHUSDT event contract risks by enforcing position sizing, daily loss limits, exposure caps, and emergency circuit b...

1. Scenario Definition

• Trigger Timing: Active continuously; validates every signal before execution; also supports manual trigger via /binance-risk-check; 24/7
• Core Intent: Provide comprehensive risk control for all signal executions; calculate position size, exposure, daily loss limit, and emergency circuit breaker; ensure no single trade risks more than 2% of capital
• Context: Applies to BTCUSDT & ETHUSDT Event Contracts; enforces Binance Event Contract rules (5-250 USDT per trade, daily loss limits); monitors account exposure across all open positions

2. Goal Setting

• Max position size: 5% of total capital per signal
• Max risk per trade: 2% of total capital (stop loss distance × position)
• Max daily loss: 10% of total capital (circuit breaker trigger)
• Max total exposure: 20% of capital across all concurrent positions
• Leverage check: Binance Event Contract leverage display only (no actual leverage used)

3. Execution Rules

3.1 Position Size Calculation

Risk Amount = Capital × 2%
Position Size = Risk Amount ÷ (Entry Price - Stop Loss)
Max Position (USD) = Min(Capital × 5%, 250 USDT) ← Binance per-trade limit
Final Position = Min(Risk-based Size, Max Position)

3.2 Daily Loss Limit Rules

• Track cumulative P&L each UTC day
• Daily Loss ≥ 5% → Warning alert (reduce position by 50%)
• Daily Loss ≥ 10% → Circuit breaker (stop new signals until next UTC day)
• Recovery: Only reset after new UTC day starts

3.3 Exposure Management

• Max concurrent open positions: 4 (2 per pair)
• If 4 active → reject new signals until one closes
• Exposure = Σ(all open position notional values) ≤ 20% of capital

3.4 Binance Contract Rule Enforcement

• Verify trade size: Min 5 USDT, Max 250 USDT per trade
• Reject any signal with position size outside 5-250 USDT
• Monitor contract cycle: warn if signal within 5min of expiry

3.5 Emergency Circuit Breaker

Trigger circuit breaker if ANY of:

• Daily loss ≥ 10%
• 3 consecutive losses in same cycle
• API data failure > 3 times
• Price slippage > 1% from entry (reject execution)

4. Example Output

✅ Positive Example (Risk Approved)

【 Risk Check PASSED | BTCUSDT Long | 12:10 UTC 】
Capital: 1,000 USDT
Risk Amount (2%): 20 USDT
Position Size: 0.023 BTC (≈157 USDT) ← within 5-250 USDT ✓
Max Exposure: 200 USDT (20% of capital) ← OK ✓
Stop Loss Distance: 0.5%
Risk/Reward: 1:2.4
Daily P&L: -2.3% ← No warning ✓
Concurrent Positions: 2/4 ← OK ✓
✅ Execution approved

❌ Negative Example (Risk Rejected)

【 Risk Check FAILED | ETHUSDT Short | 12:10 UTC 】
Reason: Daily loss 11.2% exceeded circuit breaker threshold
Action: ALL new signals suspended until 00:00 UTC
Recovery: Reduce position immediately or wait for reset
⚠️ CIRCUIT BREAKER TRIGGERED

5. Boundary Definition

• FORBIDDEN: Approve position size > 250 USDT (Binance hard limit)
• FORBIDDEN: Approve trade if daily loss ≥ 10%
• FORBIDDEN: Allow more than 4 concurrent positions
• FORBIDDEN: Approve trades 5 minutes before contract expiry
• Exception: If circuit breaker triggered → suspend all execution, alert immediately

Installation

npx clawhub@latest install binance-event-contract-risk-manager --dir /workspace/skills

Trigger Command

/binance-risk-check