How to Spot Solana Risks with Signals
Identify and monitor risk factors in your SOL holdings with health signals.
Solana Risk Overview
Solana is a highly functional open source project that banks on blockchain technology’s permissionless nature to provide decentralized finance (DeFi) solutions. It is a layer 1 network that offers fast speeds and affordable costs. While the idea and initial work on the project began in 2017, Solana was officially launched in March 2020 by the Solana Foundation with headquarters in Geneva, Switzerland.
Understanding Solana Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Solana (SOL) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Solana
- Concentration Risk: Your SOL 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
Solana 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 Solana Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Solana. Each signal tells you specifically what risk is present in your SOL position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when SOL 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 Solana to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your SOL position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Solana position is large relative to daily trading volume.
Volatility Risk
Tracks SOL price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Solana with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Solana: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your SOL Focus score, position size, and market conditions.
Layer 1s like Solana face technology risk, competition from other L1s, and potential centralization concerns. Your SOL risk assessment should include validator distribution, governance capture risk, and ecosystem dependency.
Monitor Solana Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.