How to Spot BFUSD Risks with Signals
Identify and monitor risk factors in your BFUSD holdings with health signals.
BFUSD Risk Overview
BFUSD is a reward-bearing asset redeemable for USD stablecoin. It offers rewards on qualifying balances and can be used as Margin in Futures Accounts, allowing users to earn rewards simultaneously. Users holding BFUSD in their account will receive a daily reward in USD stablecoin at the APR for their Qualifying balance.
Understanding BFUSD Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your BFUSD (BFUSD) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for BFUSD
- Concentration Risk: Your BFUSD 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
BFUSD currently exhibits stable price action with a 24-hour volatility of 0%. As a stablecoin, BFUSD is designed to maintain price stability, but this doesn't eliminate all risks such as de-pegging events or protocol vulnerabilities.
How Fundamentally Monitors BFUSD Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for BFUSD. Each signal tells you specifically what risk is present in your BFUSD position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when BFUSD 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 BFUSD to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your BFUSD position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your BFUSD position is large relative to daily trading volume.
Volatility Risk
Tracks BFUSD price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for BFUSD with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for BFUSD: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your BFUSD Focus score, position size, and market conditions.
Stablecoins like BFUSD can lose their peg during market stress or reserve issues. Monitor BFUSD reserve composition, redemption mechanisms, and historical peg stability when evaluating concentration risk.
Stablecoins like BFUSD face de-peg risk rather than typical volatility. Monitor BFUSD reserve health, audit reports, and any deviation from the $1 peg. Concentration Risk still applies if you hold too much in a single stablecoin.
Monitor BFUSD Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.