Perp desks use **up to 75× leverage** on Avantis. Liquidation is expected at scale, not exceptional.

## Risk parameters

From `config.RISK`:

| Parameter | Default | Purpose |
| --- | --- | --- |
| `maxPositionUsdc` | 500 | Cap single deploy size |
| `minDeployUsdc` | 1 | Dust threshold before desk acts |
| `maxDrawdownPct` | 0.40 | Drawdown before reduction |
| `drawdownReducePct` | 0.50 | Fraction to reduce on drawdown |
| `circuitBreakerPct` | 0.50 | Halt threshold |
| `liquidationWarningPct` | 0.15 | Proximity alert band |
| `earlyTakeProfitPct` | 0.30 | Take-profit trigger |
| `takeProfitReducePct` | 0.25 | Reduce size after profit |
| `reservePct` | 0.20 | Keep collateral reserve |
| `minWalletBalanceEth` | 0.05 | Gas safety floor |

Tune via environment variables — see [Deployment](/operations/deployment).

## Desk halts

`desk-risk` and profit checks can **halt** a token's desk (`isTokenDeskHalted`). While halted:

- `desk-manager` skips open/increase
- Pending perp USDC stays queued
- PUM buyback leg continues (global, not desk-dependent)

## PnL availability

Before acting on desk profit:

```typescript
if (!position.pnlAvailable) {
  // price unavailable — not zero profit
}
```

`pnlAvailable === false` means oracle/data failure, not necessarily flat PnL.

## Liquidation scenario

1. Adverse move wipes USDC collateral on Avantis
2. Desk position closed onchain
3. No creator buyback from that collateral
4. Future fee claims fund a **new** desk open (if agent allows)

Fission docs describe the same tradeoff: cumulative buyback pressure *may* exceed liquidation losses over time — **not guaranteed**.

## Operational risks

| Risk | Mitigation |
| --- | --- |
| Hot wallet compromise | Minimize balance; monitor Basescan |
| Venice / Pinata / Neynar key leak | Rotate keys; scope to least privilege |
| Extended backend downtime | In-memory state loss; reconcile on boot |
| Smart contract bug | Registry is minimal Ownable — audit gap remains |

## Product disclaimer

Match tone from pumperp.com legal section: experimental, unaudited, not financial advice. High leverage can zero desk collateral quickly.