> For the complete documentation index, see [llms.txt](https://selen-ai.gitbook.io/selen-ai/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://selen-ai.gitbook.io/selen-ai/risk-engine-and-portfolio-orchestration.md).

# Risk Engine & Portfolio Orchestration

Selen AI’s Risk Engine offers advanced features that ensure smart, risk-aware trading:

* **Global Max-Drawdown Halts**: Automatically stops trading if a user’s portfolio experiences a predefined drawdown, safeguarding against catastrophic losses.
* **VaR-Based Exposure Caps**: Utilizes Value-at-Risk (VaR) models to limit exposure to any asset, ensuring that risk stays within acceptable bounds during volatile market conditions.
* **Real-Time Asset Correlation Heatmap**: Displays live correlations between assets, helping users understand their portfolio’s risk profile and make informed diversification decisions.

Additionally, **auditability** is built in for compliance. Every trade, risk score, and override is securely hashed and stored in an immutable audit log, ensuring transparency and full traceability in line with regulatory standards.