> For the complete documentation index, see [llms.txt](https://nebula-18.gitbook.io/nebula/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://nebula-18.gitbook.io/nebula/tech-overview/nebula-technology-overview/risk-management-and-security/market-risk.md).

# Market Risk

#### **Volatility Management**

Nebula actively monitors collateral volatility and adjusts collateralization ratios dynamically to mitigate risk.

#### **Stress Testing**

The protocol is subjected to simulated extreme market conditions to evaluate its resilience and refine risk parameters.

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