Emergency Exit

Emergency exit

In case a protocol used in strategies gets exploited, we can emergency withdraw the funds from the protocol on behalf of Brokkr users. The funds are still stored in the strategy but not in the 3rd party protocol.

Architecture

• Cash strategy

  • Holds stablecoins

• Wrapper portfolios

  • Consists of two strategies, an actual investment strategy, and a cash strategy.

  • Typically the target allocation of the Wrapper portfolio would be 100% investment strategy, and 0% cash strategy.

  • In case of an emergency exit, the portfolio rebalances all funds from the investment strategy (100% -> 0%) into the cash strategy (0% -> 100%).

Step-by-step process:

• The DAO Team decides to emergency exit a strategy

• The DAO multisig triggers a function to rebalance

• The portfolio moves all funds from the investment strategy into the cash strategy

• Users can withdraw their funds at any point, while DAO has never access to their funds