> For the complete documentation index, see [llms.txt](https://docs.superposition.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.superposition.finance/dynamic-margin-and-risk-management/market-risk.md).

# Market Risk

One of the critical benefits of Superposition’s dynamic margin is its ability to respond quickly and accurately to market conditions. In a world where cryptocurrency prices fluctuate wildly from hour to hour, having a real-time model that can keep up with these changes is crucial for lenders looking to manage their risks effectively.

**TLDR**

Superposition achieves dynamic margin by building on top of Concordia's real time market risk engine. Therefore:&#x20;

* Superposition doesn't have a static LTV ratio assigned to each asset pair&#x20;
* Your portfolio will be assessed holistically to determine how much you can borrow for any particular asset
* Correlation between the collateral and debt is always considered, i.e. **Superposition is always in High Efficiency Mode (E-mode).**
* Superposition can react faster to systemic risk events, such as stable coin de-peg, over-concentrated collaterals, liquid staking asset price divergent...to name a few.&#x20;

**For Details**

Visit <https://docs.concordia.systems/> to learn about how the Concordia Risk Engine supports the DeFi ecosystem to combat market risk and prevent systemic failure.&#x20;
