> For the complete documentation index, see [llms.txt](https://teragon.gitbook.io/teragon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://teragon.gitbook.io/teragon/teragons-three-pillars/tensors/risk-control-strategy.md).

# Risk-Control Strategy

### What is the Risk-Control Strategy <a href="#docs-internal-guid-869c679c-7fff-ee28-09bb-d018313afe99" id="docs-internal-guid-869c679c-7fff-ee28-09bb-d018313afe99"></a>

These strategies will be built upon existing Teragon Indices. The strategies invest in a specific Teragon Index with exposure level tied to realized volatility. This allows users to invest in an index with a specific risk/return profile.

The strategy can also be used in structured product vaults in long option format, enabling users to buy options at lower premiums due to lower implied volatility.

### Implementation Example

* Teragon GCI 50% Volatility (50vol) Risk Control Strategy on BSC
* Users invest by providing BNB or BUSD
* The strategy invests MIN\[100%, 50% / Realized\_Vol] into Teragon GCI
* The remaining amount is used for yield farming
* The strategy regularly rebalances the leverage to target 50% volatility

### Coming Soon&#x20;