QuantumPoolsStop-Loss & Capital Preservation
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How a crash is handled

The Stop-Loss: a pause that only fires when a token has really crashed

Snuggling is built for ordinary price swings. A crash is not ordinary. This article shows exactly when QuantumPools stops its automatic snuggles for a position, why, and what you can do next. Drag the simulator, watch the animations, and you will know how to protect your capital before you deposit.

The Stop-Loss pauses a position only when both are true:

If the token goes up, nothing ever pauses. It never sells anything for you, it costs no gas to clear, and withdrawing is always possible.

The rule in one picture

Two lights. The popup needs both.

Think of an AND gate. The yellow popup lights up only when both lamps are on. Watch the four cases cycle, or step through them yourself.

Out of range, token fallingYou now hold only the risky token
Token down 40% or moreThe token's own price, from its start price
No popup

Try it yourself

Drag the token's price

The example pool is TOKEN / WETH. The slider is TOKEN's price against its start price, the price when your position was opened or last re-centred. (The real rule also checks the price where your position first started, across all its re-centrings; the simulator keeps to one start price to stay simple.) Pick a range width and a Stop-Loss setting, then drag. The bar shows what you hold at each price.

Range
Stop-Loss
← TOKEN FALLS TOKEN RISES → your range start −40% line now WHAT YOU HOLD AT THIS PRICE blue = WETH · gold = TOKEN (shares of value at this price)
Left is always "TOKEN falls", whichever way a pool's chart is drawn. The rule follows the token's real price, never which edge of a chart the marker is on.
TOKEN price vs start
0%
this is what the Stop-Loss measures
Your position vs start
0%
not what it measures
Try these: pick Medium and drag to −50%: TOKEN is down 50% but you are still in range, so there is no popup. Pick Narrow and drag to −25%: out of range and holding only TOKEN, but not down 40% yet. Drag to −45%: both lamps on, popup. Now drag to +100%: out of range the other way, you hold all WETH, and nothing pauses.

Which way matters

When the token goes up, nothing pauses

Leaving your range upward means the token gained value and you sold into the gain, so you now hold the other token. That is the system working. There is no stop-loss on a gain, however large. Only a fall of the risky token counts: in WETH / TOKEN the risky token is TOKEN; against a stablecoin it is the other token.

TOKEN GAINS: out of range upward, no pause ✓ keeps snuggling TOKEN CRASHES: both lamps on, pause −40% line ⏸ paused — you decide
Left: the price climbs, the position moves out of range upward, and automatic snuggles carry on as normal. Right: the price falls through the −40% line and the position is now entirely the falling token, so the automatic snuggle pauses.

When it fires

You get a popup and three clear choices

The yellow popup appears on the position's card. Automatic snuggling for that one position waits for you. The pause cannot sell, move or lock anything.

Choice 1Wait

Do nothing. Nothing is sold or moved. The position sits out of range earning no fees, and the pause stays until you act.

Choice 2Re-activate Snuggle

Sign a message in your wallet. It sends no transaction and costs no gas. Automatic snuggling resumes for the position.

Choice 3Withdraw

Always possible. The vault has no way to block a withdrawal. On the site the Withdraw button first asks for the same free signature.

Signing is just consent. Authorizing signs a message that says "this wallet owns the position and chose this". The vault does not need it to let you withdraw; it is a deliberate speed bump so a crash is never handled on autopilot by accident.

Capital preservation

What "preserving capital" really means here

The Stop-Loss cannot make a falling token rise, and it never sells for you. Capital preservation is three things working together: a line you choose, a pause instead of autopilot, and an exit that is always open.

value when the position was last re-centred = 100% Stop-Loss line: −40% Pause here. You decide:wait · re-activate · withdraw Illustration only. A position that is entirely the falling token is worth 60% of its start value when the token is down 40%.
The line does not stop the fall. It guarantees a human decision at a point you chose, instead of the bot carrying on.
A line you choose

Off until you set it. Pick a percentage before you deposit or on the card (40% is a good starting point), and switch it off again any time.

A pause, not a sale

Nothing is sold, swapped or moved. Only the automatic snuggle waits, so a big move is never handled on autopilot.

An exit that is always open

Withdrawals cannot be paused. You get back what the position holds, with no swap and no lock-up.

Be clear about the limits.
  • It does not prevent a loss. It makes sure you decide at the line you set.
  • Keepers check positions about every one to three minutes. A very fast crash can fall past your line before the next check.
  • Every re-centring creates a new position under the hood, and QuantumPools links them, so a slow slide adds up: it can cross your line even if no single re-centring did. A position that already existed when this check began is measured from that day, so a slide that happened earlier is not counted.
  • Fees help but do not guarantee anything. Fees are the cushion against impermanent loss; Cover Value shows whether they are winning.

Make it yours

Where to set it

Does it sell my tokens?

No. The Stop-Loss only pauses automatic snuggling. It never sells, swaps or moves anything.

Does clearing the popup cost gas?

No. Re-activating or authorizing a withdrawal is a signed message, not a transaction.

What if the token rises after the pause?

The pause stays until you re-activate it or withdraw. A pause that tripped on a real crash is never cleared silently, even if the price bounces.

Is it on by default?

No. A position has no Stop-Loss until you set one on the Add page or on its card, so nothing ever pauses on its own. The Set Stop-Loss box starts at 40%, a deliberately wide line so ordinary swings never trigger it. You can pick a tighter or looser one, or turn it off.

Why 40%?

It is only the starting suggestion in the box, wide enough that ordinary swings never trigger it.

What does "since your position started" mean?

Each re-centring makes a new position under the hood. QuantumPools links them in order, so the fall is also measured from where the first one began. A token that loses 10% at every re-centring never drops 40% in one go, but it is still down far more overall, and that is what this catches.

Does it apply to every chain?

The Stop-Loss covers positions on the Ethereum-style chains QuantumPools supports.

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