Exposure Reconciliation — What Your Portfolio Actually Means
The Exposure Reconciliation Engine computes your portfolio's true net exposure after overlapping positions are combined — not just the sum of what you hold.
TL;DR
The Exposure Reconciliation Engine computes your portfolio's true net exposure after overlapping positions are combined — not just the sum of what you hold.
Why This Exists
A portfolio with BTC lending, BTC-backed preferred shares, and stablecoin yield on the same counterparty has three line items but one underlying risk. The allocation table overstates diversification. The Exposure Reconciliation Engine shows effective exposure.
How It Works
Step 1: Tag positions with underlying exposures (BTC delta, counterparty, protocol)
Step 2: Aggregate overlapping exposures
Step 3: Compute effective = net after netting
Example: 40% BTC Lending (BTC delta 100%) + 30% STRF (BTC delta ~85%) + 30% USDC Aave (BTC delta 0%). Effective BTC exposure: 40% + 25.5% = 65.5% — not 40%.
What You See in the Platform
A "True Exposure" panel with Allocated vs Effective columns. Differences above 10pp highlighted amber.
Where to Go Next
Read Liquidity Waterfall for exit timing, or Hidden Correlation for shared risks.
Next up
Liquidity Waterfall — When Can You Exit
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