How to Spot Stellar Risks with Signals
Identify and monitor risk factors in your XLM holdings with health signals.
Stellar Risk Overview
The Stellar network is an open source, distributed, and community owned network used to facilitate cross-asset transfers of value. Stellar aims to help facilitate cross-asset transfer of value at a fraction of a penny while aiming to be an open financial system that gives people of all income levels access to low-cost financial services. Stellar can handle exchanges between fiat-based currencies and between cryptocurrencies. Stellar.org, the organization that supports Stellar, is centralized lik...
Understanding Stellar Risk Signals
Fundamentally provides 7 types of risk signals to help you monitor your Stellar (XLM) position. These signals combine your Focus score, market timing (CBBI), and position sizing to alert you when conditions warrant attention.
Risk Signals for Stellar
- Concentration Risk: Your XLM 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
Stellar 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 Stellar Risks
View Your Signals
7 Risk SignalsOpen the Signals page to see which risk signals are active for Stellar. Each signal tells you specifically what risk is present in your XLM position.
Understand Each Signal
Clear ExplanationsConcentration Risk triggers when XLM 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 Stellar to rebalance if needed. Signals are informational—you decide what action to take based on your strategy.
Concentration Risk
Signals when your XLM position exceeds the bet size range based on your Focus score.
Liquidity Risk
Monitors when your Stellar position is large relative to daily trading volume.
Volatility Risk
Tracks XLM price swings and signals when volatility affects your position.
Timing Signals
Combines your Focus for Stellar with CBBI market timing to identify mismatches.
Frequently Asked Questions
Fundamentally monitors 7 risk signals for Stellar: Concentration Risk, Liquidity Risk, Volatility Risk, Focus-Timing Mismatch, FOMO Risk, Cleanup Candidate, and Overweight Poor Timing. These combine your XLM Focus score, position size, and market conditions.
Layer 1s like Stellar face technology risk, competition from other L1s, and potential centralization concerns. Your XLM risk assessment should include validator distribution, governance capture risk, and ecosystem dependency.
Monitor Stellar Risk Signals
Stay informed about risks in your portfolio with Fundamentally's signal system.