In the high-volatility world of crypto assets, long-term profitability has never relied on precise timing, but rather on risk management. No matter what yield strategy you adopt, a comprehensive risk protection system is essential. This article will discuss how to integrate risk control into every decision, from planning to execution.

**First Line of Defense: Strategic Planning Stage**

The first step is to define the positioning of this strategy. Don't treat it as a "source of quick profits"; instead, see it as a "supplement to stable cash flow." Only then can you allocate funds reasonably. It is recommended not to exceed 30% of your total investable assets.

Next, conduct stress testing. Ask yourself what the worst-case scenario might be. For example, if the collateralized BTCB drops 40% within 24 hours, what will happen to your position? Will it be liquidated? Based on this simulation, work backwards to determine the maximum initial collateral ratio you can withstand.

Most importantly, prepare contingency plans in advance. Lists like "If returns are below target for a week, I will gradually exit" or "If the collateral ratio exceeds 65%, I will immediately add margin" should be written out when you are calm. These "if...then..." plans should only be executed in emergencies.

**Second Line of Defense: Actual Operation Stage**

Avoid putting all collateral into a single asset. Combining BTCB with ETH can significantly reduce the impact of a single asset’s sharp decline. Diversification may seem complex, but it is actually the simplest form of protection.

Don’t borrow all at once. Suppose you can borrow up to $7,000; start by borrowing only a part of that. This approach has two benefits: first, it leaves room to add to your position if the market changes; second, if unexpected situations occur, your losses remain manageable.

Set a reasonable monitoring frequency. It’s not necessary to watch the market 24/7, but also not acceptable to check only once every few weeks. Find a rhythm—such as reviewing key indicators (collateral ratio, returns, asset prices) every three days—that allows for timely alerts without causing excessive anxiety.

**Third Line of Defense: Emergency Response**

When you notice the collateral ratio rising or abnormal price fluctuations, don’t wait. Immediate options include: adding margin, partially repaying, or exiting positions altogether. Speed often matters more than perfect decisions.

These steps may sound tedious, but in practice, they are just a few clear processes. Risk management is not about eliminating risk—which is impossible in DeFi anyway—but about ensuring risks stay within your controllable range. True experts are not those who never make mistakes, but those who minimize losses when errors occur.