How to Spot Sky Risks with Signals
Identify and monitor risk factors in your SKY holdings with health signals.
Sky Risk Overview
SKY is a governance token, which is like a digital voting share, for Sky Protocol. This system launched in 2024 as a rebrand and upgrade of the older Maker Protocol. Sky Protocol’s main value lies in giving users a simple, secure way to trade, save, and earn rewards without ever giving up control of their funds. It is built around a stablecoin called USDS, which is always worth one US dollar, but it is completely decentralized. The protocol is run by automated agreements called smart contracts, ...
Understanding Sky Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Sky (SKY) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Sky
- Concentration Risk: Your SKY 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
Sky currently exhibits stable price action with a 24-hour volatility of 0%. As a stablecoin, SKY is designed to maintain price stability, but this doesn't eliminate all risks such as de-pegging events or protocol vulnerabilities.
How Fundamentally Monitors Sky Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Sky. Each signal tells you specifically what risk is present in your SKY position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when SKY 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 Sky to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your SKY position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Sky position is large relative to daily trading volume.
Volatility Risk
Tracks SKY price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Sky with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Sky: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your SKY Focus score, position size, and market conditions.
Stablecoins like Sky can lose their peg during market stress or reserve issues. Monitor SKY reserve composition, redemption mechanisms, and historical peg stability when evaluating concentration risk.
Stablecoins like Sky face de-peg risk rather than typical volatility. Monitor SKY 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 Sky Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.