Aggregate Exposure Monitoring

Aggregate Exposure Monitoring is the process of tracking the total risk a protocol or a trader has across all assets and positions. This involves summing up the net delta, gamma, and other risk sensitivities to understand the overall sensitivity to market movements.

In a cross-margin system, this is essential for the risk engine to determine if the account remains solvent. By monitoring aggregate exposure, protocols can identify concentration risks and take preemptive action to reduce them.

For large-scale traders, this is a critical task to ensure that they are not overly exposed to a single market event or asset class. It provides a comprehensive view of risk that individual position monitoring cannot capture.