> For the complete documentation index, see [llms.txt](https://docs.krillprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.krillprotocol.com/krill-protocol-docs/technical-security/risk-mitigation.md).

# Risk Mitigation

To safeguard depositor assets against individual lending protocol failures, Krill implements a 4-layer mitigation strategy:

* **35% Single Protocol Hard Cap**
  * Exposure to any single lending adapter (Suilend, NAVI, Scallop, AlphaLend) is capped at 35% of total TVL.
  * *Worst-case scenario*: Complete loss of 1 adapter limits maximum protocol impact to ≤ 35%.
* **4-Way Automatic Diversification**
  * Automated rebalancing across 12 distinct asset routing paths.
* **15–30% Buffer Reserve**
  * Liquid buffer retained to satisfy instant withdrawal requests without triggering adapter unwinds.
* **Risk Oracle (3-of-4 Multisig)**
  * Emergency pause mechanism triggered by 3-of-4 multisig signers to pause deposits while **keeping user withdrawals open at all times**.


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