Threshold Monitoring is a surveillance technique that involves establishing predefined limits or benchmarks for specific system metrics and generating alerts or automated actions when these limits are exceeded. In crypto systems, this applies to tracking critical operational parameters such as transaction volumes, network congestion, smart contract gas usage, or deviation from expected asset prices.
Mechanism
This mechanism continuously collects real-time data from various system components, including blockchain nodes, trading APIs, and internal services, comparing each data point against a set of static or dynamically adjusted thresholds. Upon detecting a breach, the system triggers notifications to operators, initiates automated risk mitigation procedures, or records the event for audit purposes.
Methodology
Effective threshold monitoring requires a robust data collection and aggregation infrastructure, intelligently defined and calibrated thresholds, and a well-structured alerting system to prevent alert fatigue while ensuring timely response to critical events. This strategic operational control helps maintain system stability, identify potential security incidents, and ensure compliance with predefined performance and risk parameters within crypto trading and protocol environments.
The SI test methodology dictates whether a firm's compliance architecture must operate at a granular, per-instrument level or an aggregated, portfolio-class level.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
