Page 15 - FST White Paper

White Paper - FutureStart Token

Risk Assessment Framework - A Guide

Market-Related Risks
Price Volatility Risk
The risk of significant changes in token price that could affect stakeholders. We measure
this by:

 Tracking daily and monthly price movements
 Comparing our token's stability to the broader crypto market
 Setting alert levels for unusual price movements

Risk Levels:

 Low: Natural market movements
 Medium: Notable price swings requiring attention
 High: Severe price movements needing immediate action

Risk Rating = Severity × Probability

Volatility Risk Score (VRS):

VRS = σ × sqrt(T) × M
Where:

σ = 30-day price volatility

T = time horizon (days)

M = market correlation factor (0-1)

Risk Thresholds:

Low: VRS < 0.3
Medium: 0.3 ≤ VRS < 0.6

High: VRS ≥ 0.6

Liquidity Risk
The risk of not being able to buy or sell tokens easily. We monitor:

 How easy it is to trade tokens
 Daily trading volumes
 The gap between buying and selling prices

Warning Signs:

 Difficulty in executing large trades
 Widening gap between buy and sell prices
 Declining trading volumes

Nija – FutureStart Token 15 of 25 reach@futurestart.world