# Assets Protection

**Engain Stop-loss**

Stop-loss is a risk management tool commonly used in trading to minimize losses by automatically selling an asset when it reaches a predetermined price level. In DeFi, a stop-loss function can also be implemented to help investors mitigate risks and protect their investments, so we provide such a function to have additional control over the price fluctuations of the assets users invest in and have one more tool for stable yield generation.

**Engain Protection**&#x20;

The Engain Compensation System works differently by giving the investor who covers the risk some say in the terms. The main idea is that this system works for the user who doesn't want to operate with price fluctuations and has a clear expectation of the price of the asset during the time of investment.&#x20;

Simply put, the system has a person who wants to cover the risk and be a provider for the dangers he considers appropriate for him. On the other hand, there is a customer who has assets that require protection.&#x20;

The user has an asset with a set price at the moment of the deal, and the deal has conditions for getting compensation. In quite stable market conditions, the deal will include such terms as:

If the price of one "asset" falls by 20% (to 80 dollars or less) in one month from its current value of 100 dollars, the difference will be covered up to 80 dollars. At the same time, if the price increases by more than 120% (more than 120 dollars), the difference that goes over will be paid as a bonus to the party that covers the risk.&#x20;

Also, the user will pay for such a service with a fraction of the income from the tool he invests in. This way, it is possible to have income with a system that can prevent drastic or unforeseen losses while the party that covers the risk has leverage from the terms and a slightly better income rate if you compare it to just putting the investment into the tool that is covered.

This logic works with the balance of the system, where it is possible to manage risk with profit for both parties by offering a window of opportunity that controls the volatility for everyone.
