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.

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.

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.

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.

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