How to Spot PAX Gold Risks with Signals
Identify and monitor risk factors in your PAXG holdings with health signals.
PAX Gold Risk Overview
PAX Gold (PAXG) is an asset-backed token where one token should represent one fine troy ounce of a London Good Delivery gold bar, stored in professional vault facilities. Anyone who owns PAXG has ownership rights to that gold under the custody of Paxos Trust Company. Since PAXG represents physical gold, its value is tied directly to the real-time market value of that physical gold. PAXG gives customers the benefits of actual physical ownership of specific gold bars with the speed and mobility of...
Understanding PAX Gold Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your PAX Gold (PAXG) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for PAX Gold
- Concentration Risk: Your PAXG 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
PAX Gold currently exhibits stable price action with a 24-hour volatility of 0%. As a stablecoin, PAXG is designed to maintain price stability, but this doesn't eliminate all risks such as de-pegging events or protocol vulnerabilities.
How Fundamentally Monitors PAX Gold Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for PAX Gold. Each signal tells you specifically what risk is present in your PAXG position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when PAXG 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 PAX Gold to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your PAXG position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your PAX Gold position is large relative to daily trading volume.
Volatility Risk
Tracks PAXG price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for PAX Gold with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for PAX Gold: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your PAXG Focus score, position size, and market conditions.
Stablecoins like PAX Gold can lose their peg during market stress or reserve issues. Monitor PAXG reserve composition, redemption mechanisms, and historical peg stability when evaluating concentration risk.
Stablecoins like PAX Gold face de-peg risk rather than typical volatility. Monitor PAXG 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 PAX Gold Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.