How to Spot Algorand Risks with Signals
Identify and monitor risk factors in your ALGO holdings with health signals.
Algorand Risk Overview
Algorand is a scalable, secure, and decentralized digital currency and smart contract platform. Its protocol uses a variation of Proof-of-Stake (PoS) called Pure PoS (PPoS) to secure the network and reach consensus on block production. Developers can build decentralized applications (dApps) using familiar programming languages, including Python, which Algorand supports natively. Its infrastructure enables various use cases, including payment systems, digital identity solutions, supply-chain trac...
Understanding Algorand Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Algorand (ALGO) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Algorand
- Concentration Risk: Your ALGO position exceeds your bet size range
- Liquidity Risk: Your position is large relative to daily trading volume
- Volatility Risk: Large price swings combined with meaningful position size
- Focus-Timing Mismatch: High Focus but unfavorable market timing
- FOMO Risk: Good timing but low Focus score
- Cleanup Candidate: Very small position with low Focus
- Overweight Poor Timing: Above bet size range during unfavorable conditions
Volatility Context
Algorand currently exhibits stable price action with a 24-hour volatility of 0%. Volatility Risk signals help you understand when this volatility poses a risk to your position.
How Fundamentally Monitors Algorand Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Algorand. Each signal tells you specifically what risk is present in your ALGO position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when ALGO exceeds your bet size range. Volatility Risk signals you to large price swings. Focus-Timing Mismatch warns when market conditions don't favor your position.
Take Informed Action
You DecideUse the Investment Calculator to determine how much Algorand to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your ALGO position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Algorand position is large relative to daily trading volume.
Volatility Risk
Tracks ALGO price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Algorand with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Algorand: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your ALGO Focus score, position size, and market conditions.
Layer 1s like Algorand face technology risk, competition from other L1s, and potential centralization concerns. Your ALGO risk assessment should include validator distribution, governance capture risk, and ecosystem dependency.
Monitor Algorand Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.