# Flexible risk management

Ouija's slippage function serves three purposes:&#x20;

1. Disincetivise traders to disbalance the pool
2. Incentivise arbitrageurs to balance the pool
3. Never let HF fall less than some critical value

Strength of incetives for 1-2 and critical value mentioned in 3 can be managed with 2 slippage function parameters:

1. Slippage function multiplier, which manages strength of incentives for 1 and 2.

![](https://3973337651-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F51zxOfoeLULOlOJkeN4f%2Fuploads%2Flebu0q7eUUWnQbl1YW9M%2Fa-param-slow_.gif?alt=media\&token=a3107ad9-af81-4fb0-9c40-f1aa39bd5e3b)Slippage function with different multipliers applied.

2. Minimal allowed HF, which sets a point where slippage goes to practically infinite values.

![](https://3973337651-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F51zxOfoeLULOlOJkeN4f%2Fuploads%2FAxqfMQG3rfap41C8SzMq%2Ft-slow.gif?alt=media\&token=57b940fc-141d-4db3-9cc2-8ebe7a760c55)Slippage function with different HF applied.
