> For the complete documentation index, see [llms.txt](https://steakhouse.financial/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://steakhouse.financial/docs/risk-management/monitoring/portfolio-monitoring.md).

# Portfolio Monitoring

Steakhouse Financial has made significant investments into developing a proprietary offchain reallocation engine. This engine monitors all underlying markets and automates efficient rebalancing - the process of depositing and withdrawing liquidity from all underlying markets within a Steakhouse vault - leading to higher yields and more consistent depositor access to liquidity.&#x20;

As a reminder, Morpho markets target 90% utilization, meaning that generally 10% of deposited assets are available to meet immediate withdrawals requests. The standard interest rate model seeks to trigger borrower repayments when utilization is >90% by increasing the interest rate charged; the inverse is true when utilization is <90%.

<figure><img src="https://lh7-qw.googleusercontent.com/docsz/AD_4nXeZPFvagCo0KifdSJKqNinsVSZxZK47fPc9QE4L8PkGpqDGpnO_WRgkX0X4r4FIy6ndHC-86ss__VF3OUgpaWUewBfoo6ugfFQgRbqTHWbpHAPBTInr3Q5_GJsTf3wcgDCe6C2h8A?key=xXwE5eiaMPdnjtprDyN7vWjG" alt=""><figcaption></figcaption></figure>

Early on, Steakhouse realized that each underlying market became a latency competition to extract liquidity during periods of market distress. Our current infrastructure is able to predict when liquidity crunches may occur, monitor when liquidity in an underlying market returns, and outcompete competitors relying on slower (or manual) processes to actually extract that liquidity into our idle markets and meet withdrawal requests from our vault.&#x20;

In addition, our systems employ a series of automated and manual “killswitches” to avoid deploying into markets where the deposited collateral and/or market is potentially compromised. The triggers include a number of proprietary criteria - such as a deviation between an asset’s “real” price and the price reported by a particular market oracle - and lead to the cessation of deployment into and/or withdrawal from a compromised market.&#x20;

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