Introduction
2 min read
Overview
Risk Adjusted Coin, or RAC, is a risk-adjusted index designed to allocate toward the strongest opportunities while reducing unnecessary portfolio risk.
It combines three core components:
- an algorithm that optimizes the basket
- an execution system that carries the portfolio into the market
- a security model that validates sensitive actions before they reach the contracts
Together, these pieces are meant to produce a portfolio that is dynamic, risk-aware, and operationally robust.
Recorded before the veto system was retired. RAC's target weights are now set directly by the algorithm, with no voting or veto step.
How RAC Works
RAC is not just a basket of assets. It is a system.
At a high level:
- The algorithm determines what the strongest risk-adjusted basket should look like.
- RAC's target weights are set directly by the algorithm: it decides at 15:00 UTC each day and RAC applies the decision at 16:10 UTC. There is no voting or veto step.
- The execution layer turns those portfolio decisions into real portfolio changes.
- The security model constrains who can act and validates contract-touching transactions before execution.
Each of those layers matters. The algorithm improves the portfolio. Execution makes the system practical. Security makes the system safer to operate.
Start Here
The Algorithm
Learn how RAC estimates opportunity, measures volatility and correlation, and builds a portfolio that seeks the strongest outcome per unit of risk.
Trade Execution
Learn how RAC moves from one portfolio state to the next through a structured execution layer rather than naive market ordering.
Security
Learn how Adjusted approaches protocol and wallet security — from permissioned execution and transaction validation to non-custodial wallets and hardware-backed enclaves.
Fees & Economics
Learn how RAC's fee structure works, including transaction fees, yield strategy, and protocol sustainability.
Risk & FAQ
Understand what risk-adjusted means, time horizons, tax considerations, and key questions for RAC holders.
Why The System Is Layered
Most financial products stop at allocation. RAC goes further.
That is because real-world portfolio management is not only about picking assets. It is also about:
- responding to market regime changes
- handling events outside historical data
- moving capital safely
- reducing the chance that a dangerous action reaches execution unchecked
RAC is designed as a layered system because each of those problems is different. No single mechanism solves them all.
Summary
RAC is best understood as three connected systems working together:
- The Algorithm decides what the basket should be.
- Trade Execution implements the transition from the current basket to the target basket.
- Security helps ensure that sensitive actions are constrained and validated before execution, and that user wallets are protected by non-custodial infrastructure.
If you are new to RAC, the best reading order is: