> For the complete documentation index, see [llms.txt](https://governancedocs.infinity.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://governancedocs.infinity.exchange/risk-oracle.md).

# Risk Oracle

Infinity, today, has two core features:&#x20;

* Rates Trading System
* Collateral Risk Management System or "Risk Oracle"

While the Trading interface is simply an order book (not that simple under the hood, mind you), the Risk Oracle is a incredibly complex Market Risk and Credit Risk (and - many other risks) management system that may be applied to essentially any asset either on-chain, or off-chain. The Risk Oracle then makes these sets of pricing, and risk management available on-chain. Learn more about our Risk Management System.&#x20;

By using credit-risk management on-chain, Infinity then needs to hedge the credit risk thus catalyzing the credit (and other) markets as it grows.&#x20;

<figure><img src="/files/t3GQ05fQqtZDEkaqiTjC" alt=""><figcaption></figcaption></figure>

Any protocol can use the Risk Oracle to manage both Market Risk and Credit Risk. For example:&#x20;

* if **Aave** wanted to take **Uniswap V3 NFT** positions as collateral, Infinity could make that available through a smart contract.&#x20;
* If **Compound** wanted to take **Futures** positions on **dYdX** as collateral, Infinity could make that available through a smart contract
* If **Uniswap** wanted to take **WBTC** as collateral for a **USDTETH** pool (yes, cross-currency LP investing with embedded financing), Infinity could also make that available through a smart contract&#x20;

In short, Infinity can enables cross-margining of very complex positions available for any DeFi protocol unlocking unlimited new possibilities.

**Partner Protocols**

Infinity looks to offer $IFT tokens as rewards and/or grants to other protocols that look to integrate more complex cross-margining. For example, if Aave wanted to take Uniswap V3 NFTs as collateral, we could offer $IFT tokens as an incentive for Aave users try out this new feature.&#x20;

In most cases, we would look to jointly fund such initiatives from a mix of our treasury tokens and the other protocol's tokens, and then grant $IFT tokens as token rewards to encourage the right user-behaviors. &#x20;
