Market Risk Lead (Decibel) at Aptos
Position Overview
The Head of Market Risk (Decibel) is a senior leadership role responsible for overseeing and enhancing the firm’s risk management framework across market, trading, and exchange operational risks. This individual will ensure robust risk controls, real-time monitoring, and crisis response mechanisms while working closely with engineering, trading, and executive teams. The ideal candidate will have deep expertise in derivatives risk modeling, crypto markets, and financial engineering, with prior experience at top-tier trading firms, exchanges, or investment banks.
Key Responsibilities
1. Market Risk Management
Risk Engine & Framework: Continuously improve and manage the firm’s risk engine, ensuring accurate pricing, margin modeling, and liquidation mechanisms.
Risk Modeling & Analysis: Develop and refine market risk models, including Value-at-Risk (VaR), stress testing, and scenario analysis.
Risk Surface Assessment: Identify emerging risk exposures, assess business impact, and implement mitigation strategies.
Stress & Sensitivity Testing: Collaborate with engineers to design and execute stress tests, scenario analyses, and sensitivity tests.
Market Surveillance: Build and enhance real-time monitoring tools for liquidity risks, market manipulation, and abnormal liquidation events.
Alerting & Emergency Protocols: Establish automated alerting systems and on-call response processes for risk-related emergencies.
Documentation & Reporting: Maintain clear documentation of risk models, processes, and key risk vectors for internal and external stakeholders.
Risk Controls & Interventions:
Define and adjust max leverage, position limits, and maintenance margin ratios per market.
Set open interest caps and evaluate collateral haircuts for multi-asset portfolios.
Continuously validate model accuracy by comparing expected vs. actual outcomes.
Evaluate and set collateral haircut ratios
2. Trading Risk Management
Trader Collaboration: Work closely with traders to establish risk management policies, position limits, and margin requirements.
Risk Dashboards & Alerts: Develop real-time risk dashboards and automated alerts for trading desk activities.
Position & Margin Oversight: Monitor and manage the trading desk’s exposure, ensuring adherence to risk limits.
3. Smart Contract Risk Management
Monitoring Tools: Partner with engineers to implement surveillance mechanisms for smart contract risks (e.g., large withdrawals, exploit detection).
DeFi Risk Assessment: Evaluate protocol-level risks in DeFi integrations and recommend safeguards.
4. Crisis Management & Incident Response
Emergency Protocols: Lead risk-related crisis management, including liquidation cascades, exchange outages, or market manipulation events.
Post-Mortems & Prevention: Conduct thorough incident analyses and implement preventive measures to mitigate future risks.
Required Background & Expertise
Industry Experience
Crypto Derivatives Exchanges: Binance, Bybit, OKX, dYdX, Deribit, BitMEX, Hyperliquid.
Years of Experience: VP - MD level experience. 6+ years of experience.
Traditional Finance: Senior market risk roles at investment banks (Goldman Sachs, Morgan Stanley, JP Morgan) or prop trading firms (Jump Trading, Jane Street, DRW, Citadel).
Options & Derivatives Trading: Experience in options trading, index arbitrage, or volatility strategies.
Crypto Hedge Funds & Market Makers: Wintermute, Cumberland, Amber Group, etc.
Fintech & DeFi: Risk professionals from Robinhood, BlockFi, Aave, Compound, or similar platforms.
Education & Technical Skills
Degrees: Mathematics, Quantitative Finance, Actuarial Science, or related fields.
Quantitative Expertise:
Strong foundation in statistics, probability, and financial modeling.
Experience in derivatives pricing, risk modeling (VaR, Greeks, stress testing).
Programming skills (Python, or similar) for risk analytics and automation.
Personality & Competencies
Decisive Under Pressure: Strong crisis management skills in high-stakes, volatile environments.
Analytical & Proactive: Anticipates risks and implements preemptive controls.
Detail-Oriented: Meticulous in risk assessment, documentation, and process improvement.
Strong Communicator: Clearly articulates risk strategies to technical and non-technical stakeholders.
Collaborative: Works effectively with traders, engineers, and executives.
Resilient: Maintains composure during extreme market conditions.