Risk Framework

The Corthex Capital risk framework places risk before exposure. It is a way of thinking about what can go wrong before considering what might go right.

Risk first

Corthex Capital considers risk before it considers a position. The firm asks what a view costs if it is wrong before asking what it returns if it is right, and treats the management of loss as the precondition for any work in global markets and digital assets.

Drawdown

The firm studies how losses compound and how quickly conditions can change. Understanding the depth and path of potential drawdown matters more than any single estimate of upside.

Liquidity

Liquidity matters. Corthex Capital pays close attention to the conditions under which markets can absorb activity and the conditions under which liquidity withdraws — particularly in emerging and digital-asset markets where it can be uneven.

Concentration and the limits of a view

No single view is treated as certain. The firm considers concentration, correlation and the possibility that its own analysis is incomplete. Research is expected to be revised as evidence changes.

What the framework does not do

The Corthex Capital risk framework does not promise returns, does not eliminate risk, and does not constitute investment advice. It is a discipline, not a guarantee. The firm makes no performance claims.

The risk framework is applied alongside the firm's principles and its approach to research.