# Risk Philosophy

The protocol follows three fundamental principles:

1. **Accounting-first safety**\
   Execution may fail or stall; accounting must remain correct at all times.
2. **Failure isolation**\
   A plane (or strategy within a plane) can fail without affecting other planes or global solvency.
3. **Conservative valuation**\
   When validators cannot confirm a strategy’s state, its value is immediately discounted until validation resumes.

These principles ensure that the system can handle asynchronous cross-chain behaviour without compromising user guarantees.


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