> For the complete documentation index, see [llms.txt](https://yieldshield.gitbook.io/yieldshield/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://yieldshield.gitbook.io/yieldshield/features/stop-loss.md).

# Stop-Loss

Finally, you can get a good night's sleep or spend a day out, knowing your investment is shielded, thanks to YieldShield’s stop-loss mechanism.

#### What is stop-loss?

**Stop-loss** is a trading tool designed to limit the maximum loss of an investment by automatically liquidating assets once the market price reaches a specified value.

YieldShield is using stop-loss to prevent the loss of the investment.

Simply specify the level of allowable drawdown and our RoboFarmer will collect your investments and rewards, swap them to th

### How does stop-loss work? 

1\) set stop-loss percentage when creating investment.

![](/files/kVPLYt3fhsjuBWIp68Ie)

2\) Every block we are checking for the updates on-chain to see all the changes in the pools and prices.

3\) If the stop-loss percentage was hit - robofarmer will exit the investment, claim rewards, convert all of it to the currency you initially invested, and send it to your wallet.

{% hint style="warning" %}
**Important:** YieldShield is not charging any platform fees when stop-loss is activated. Only a Gas Fee will be charged from the Gas wallet on the platform. 
{% endhint %}

{% hint style="warning" %}
**Important:** if you do not have enough funds on your Gas wallet - stop-loss will not be activated as the transaction can't go through.  
{% endhint %}

#### How to calculate the stop-loss percentage? 

$$
Stop \~loss , %  = 100% - \frac{Initial ,Investment} {Current ,Investment - Gas, fee}
$$

**Initial investment** - investment amount at the moment of creating the investment (calculated in USD).

**Current investment** - current value of the investment (the price of LP tokens funds are staked to) and rewards collected so far (calculated in USD).

**Gas** - the total amount of gas spent for this investment (calculated in USD).

![Stop Loss Diagram](/files/gUHfCQGggWhSfUNC3l5k)


---

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