Risk Scoring
How Midas builds the 0–100 risk score for every strategy.
Every strategy in the Strategy Maker carries a headline risk score from 0 to 100, shown on a gauge and labelled (e.g. Low / Moderate / High). It is informational only — a way to compare strategies at a glance, not financial advice.
How the headline score is built
The 0–100 score blends two halves equally:
- Your leverage — leverage ratio, borrow APR, LP exposure, and the number of protocols involved.
- Pool quality — the risk of each step's underlying pool, weighted by how much of your capital sits in that step.
With a single step, the score is mostly that step's risk. As you add steps, it blends toward the exposure-weighted average across all of them.
How each step is scored
Every step scores 1–10 from whichever of these signals apply to it:
| Signal | When it raises risk |
|---|---|
| Utilization (Vesu) | Above 50% is medium; above 75% is high. |
| Debt-cap headroom (Vesu borrow) | 10% or less remaining is riskier. |
| Incentive share | When 50% or more of the APY comes from rewards — rewards can end. |
| TVL / liquidity | Below ~$1M ramps up risk; thin pools dilute returns and are harder to exit. |
| Market depth (Ekubo) | In-range depth below 20% of TVL is riskier. |
| Troves | Folds in Troves' own published risk factor (0–5). |
A signal that isn't available for a step is simply left out — it never counts as zero risk. The per-step panel shows the active signals inline (for example, "Utilization 15%" and "Incentive 95% of APY") so you can see what's driving each step's score.
Numbers shown are informational, not financial advice. They model pool and leverage risk; they do not predict returns or guarantee against loss.