What we monitor - Zyfai Documentation

Two processes run before and after your deposit. A pool has to pass whitelisting to become available. Once your funds are in, every rebalance has to pass six checks, and lending markets stay under watch for liquidity, bad debt, borrowers near liquidation, oracles, and strategy drift. Live scores are on the Risk Dashboard.

Before a pool is allowed

A protocol, its collaterals, and the pool itself are reviewed separately. The full gates are in the Risk Framework. In short:

Protocol. Audited contracts, no unresolved critical findings, tier-1 oracles, multisig control, and a minimum age and TVL for the strategy tier. Conservative requires 36 months live and $100M TVL. Aggressive requires 12 months and $25M TVL.
Collateral. Backing, market cap, liquidity, volume, and depeg history. An asset missing data on two or more criteria is flagged as insufficient data and is not given a tier.
Pool. TVL and liquidity thresholds for that tier, on a protocol and collateral set that already passed.

New pools are reviewed daily. A pool that stops passing is removed. You can see the live set on risk.zyf.ai. Lending pools also have to fit an oracle and a maximum LLTV for the pair. The full table is in the Risk Framework.

Pair	Oracle	Strategies	Max LLTV
Volatile / stable, such as cbBTC/USDC	Market price	All	86% for BTC or ETH, 77% otherwise
Assets that move together, such as wstETH/ETH	Redemption rate	All, if redemptions are not delayed	94.5%
Stable / stable, such as USDe/USDC	Fixed price	Aggressive and Yield Maxxing only	94.5%

Conservative does not include stable/stable markets on a fixed-price oracle.

The six checks on every rebalance

The Agent moves funds only when all six pass. The detailed rules are on Rebalancing Rules.

Check	What it stops
Pool safety	A position that is too large for the pool. Your deposit stays under 20% of pool TVL. Zyfai TVL stays under 80% of pool TVL.
Meaningful yield difference	Chasing a gain below 0.1%.
Profit vs. transaction costs	A move whose extra yield does not pay for the cost. On mainnet, slippage must be covered by at least 14 days of APY.
Money market liquidity	Getting stuck on the way out. Zyfai TVL stays under 85% of the pool’s remaining liquidity.
Collateral health	Staying in a market whose collateral is breaking its peg.
TVL stability	Staying in a pool whose liquidity is collapsing.

Collateral health and TVL stability also run outside of rebalance decisions:

A 50 bps move off the peg is a warning. A 100 bps move is flagged risky and the Agent rebalances away.
If pool TVL falls below 40% of its 14-day high, the pool is flagged risky and the Agent rebalances away.

While the position is open

Lending markets are watched continuously, on top of the six checks. These rules are in Pool Monitoring. Alerts also fire when a pool drifts out of its strategy tier.

What is watched	What the Agent does
Free liquidity	The position is reduced above 85% of free liquidity. New deposits stop if utilization exceeds 92%.
Losses	The position exits immediately if the lending pool’s share price drops, or if any bad debt appears.
Borrowers near liquidation	Debt with an LTV within 5 points of liquidation is measured. The position is reduced when that share is above 20% of total debt, and exited above 40%.
Oracle	New deposits stop if the price feed is stale, or if the oracle price is more than 1% above the market. The position exits above 2%. This matters most for redemption-rate and fixed-price oracles, which do not follow the market.
TVL, separately from the rebalance check	A 40% drawdown from the 30-day high is flagged. An APY move of 2σ together with a 20% TVL drawdown is also flagged.

A live pool is also re-scored from the collateral it actually holds: Share of a tier = exposure to collateral in that tier ÷ exposure to collateral that has been reviewed.

Pool tier	It stays in this tier when
Conservative	Share(Conservative) ≥ 70%, Share(Aggressive) ≤ 30%, Share(Yield Maxxing) = 0, Share(Risky) = 0
Aggressive	Share(Yield Maxxing) ≤ 30%, Share(Risky) ≤ 5%
Yield Maxxing	Share(Risky) ≤ 15%

The pool takes the first tier it satisfies. Risky means collateral that fails the Yield Maxxing criteria. Shares of 0.5% or less are ignored as dust. A pool with less than 60% of its exposure reviewed is marked as having insufficient data. If the tier it now qualifies for is below the strategy you selected, it is flagged as drift.

When something breaks

Detection is automatic, and the quant team can also mark a pool not-live by hand. Once a pool is not-live, the Agent stops allocating to it and moves existing positions out. If no safer pool passes the checks, capital can sit unallocated in the Safe. The Emergency Response page records three cases where that exit happened before the loss reached Zyfai users:

Incident	What was going wrong	What the Agent did
Stream Finance, Nov 2025	xUSD depeg and bad debt in Sonic markets	Exited xUSD-exposed pools before the public disclosure
Resolv, Mar 2026	Unbacked USR, wstUSR / RLP depeg	Left the affected Morpho vault at a 15 bps warning. Conservative pools had no exposure
Aave / Kelp, Apr 2026	Unbacked rsETH posted on Aave, WETH liquidity running toward a trap	Exited Aave V3 WETH on Ethereum, Base, and Arbitrum

Each case links transactions and a post-mortem on that page. If the incident is in the Session Key layer itself, the kill switch pauses Agent execution. Your funds remain in the Safe. Next: Choosing a strategy.

​Before a pool is allowed

​The six checks on every rebalance

​While the position is open

​When something breaks

Before a pool is allowed

The six checks on every rebalance

While the position is open

When something breaks