Automation, safety parameters and backend security:

âTARS executes all operations through multisig wallet structure. It enforces protocol allowlists, pool-depth minimums, and oracle-parity checks to prevent adverse execution. Each rebalance is transparently logged on-chain, ensuring verifiability and minimizing discretionary human intervention.

Risk management:

atvPTmax follows a multi-layered risk framework designed to preserve capital, ensure liquidity, and sustain yield consistency. All allocations are governed by âTARS, which applies deterministic constraints at every stage, selection, execution, and monitoring.

1. Pool Evaluation Criteria

Each pool is assessed against a defined risk framework before capital deployment:

• Withdrawal Liquidity: Instant withdrawal capacity is evaluated to ensure exit feasibility under stressed conditions.

• Price Impact (PI): Pools with low entry and exit price impact are preferred; high PI directly reduces net realized yield.

• Stablecoin Quality: Underlying assets must be established stablecoins (e.g., USDC, USDT, USDe etc.).

• Market Depth and Maturity: Pools must exhibit sufficient liquidity depth, and underlying assets must have high market capitalization, have >10-day maturity.

• Yield Source Integrity: Pools relying on off-chain yield generation mechanisms are classified as high-risk and excluded.

• Manual hard Exclusions: Any pool flagged as high-risk during manual filtering or failing minimum criteria is removed from consideration.

A dedicated risk-scoring process pools factsheets, protocol documentation, and yield mechanics to assign a quantitative risk score. Only pools exceeding the minimum score threshold are eligible for allocation.

2. Investment Constraints

To control concentration and liquidity risk, the following allocation rules apply:

• Pool Concentration Cap: Investment in any single pool is capped at ≤10% of the pool’s total liquidity (TVL).

• Instant Withdrawal Cap: Where applicable, investment is limited to ≤10–15% of the pool’s instant withdrawal capacity.

• Diversification Requirement: Capital is distributed across a minimum of two pools.

• Liquidity Bias: At least 80% of total TVL is allocated to high-liquidity pools, pools backed by large-cap assets, or prime Pendle PT markets.

• Constraint Verification: ZK-based verification of allocation constraints is planned for on-chain enforcement.

3. Continuous Monitoring and Exit Strategy

• PT & Market Surveillance: Principal Token positions and underlying markets are continuously monitored for adverse events, negative sentiment, or liquidity deterioration. Yield Deviation Trigger: If realized or projected yield falls below the Pendle reference watermark, an automated exit is initiated.

• Route Optimization: The agent periodically scans Pendle markets for superior net expected yield opportunities, factoring transaction costs, maturity, and price impact, and rebalances accordingly.

4. Execution Safety

• Every rebalance is pre-simulated.

• Execution is permitted only under risk-approved Price impact and Slippage.

• Oracle-parity checks validate fair pricing before transaction submission.

5. Governance and Transparency

• Transactions are authorized via a 3-of-4 multisig.

• Every allocation, rebalance, and exit is recorded and published by âTARS in Rebalance report for full auditability.