> ## Documentation Index
> Fetch the complete documentation index at: https://docs.priest.trade/llms.txt
> Use this file to discover all available pages before exploring further.

# Risk Controls & Exposure Caps

> Counterflow uses clear rules to make sure a single wild market cannot drain the liquidity pool.

Counterflow uses clear rules to make sure a single wild market cannot drain the liquidity pool.

***

## 1. Max 10% exposure per market

To stop any single coin from threatening the vault:

* Counterflow caps its unpaid coverage to at most **10% of total vault NAV** on any one market.
* If a market reaches this 10% cap, Counterflow pauses further coverage on that specific coin until previous draws are repaid by fee sweeps or trader losses.
* The rest of the vault's capital remains safe.

***

## 2. Max 50% total exposure

Across all backed markets combined:

* Total outstanding coverage cannot exceed **50% of the vault's total assets**.
* At least **50% of the vault's USDC is always sitting as uncommitted cash**, ensuring LPs can process normal withdrawals even during volatile market events.

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## 3. The 3-day redemption cooldown

Withdrawals require a **3-day cooldown**:

* You submit a redemption request.
* The contract locks your shares for 3 days.
* Once 3 days pass, you claim your USDC at the current share price.

This stops predatory traders from watching a sudden price move and draining the pool right before a loss is settled.

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## 4. 24-hour profit unlocking

When income (fees or trader losses) is swept into Counterflow:

* The profit unlocks smoothly over **24 hours**.
* This stops arbitrage bots from depositing 1 second before a fee sweep and withdrawing right after to steal yield from existing depositors.

***

## See also

* [Counterflow Overview](https://docs.priest.trade/vaults/counterflow-vault.md) — how the vault works.
* [Depositing & Withdrawing cfUSDC](https://docs.priest.trade/vaults/depositing-and-withdrawing.md) — managing your vault position.
* [NAV, Yield & Profit Unlocking](https://docs.priest.trade/vaults/nav-and-yield.md) — cash-based accounting.


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