# Mechanics & Strategy

**6. Does Stratos use leverage?**\
No. Stratos uses a 100% spot execution strategy. We do not borrow funds or use margin. This means there is zero risk of liquidation. If the market drops, your position is simply rebalanced into stablecoins; you are never "wiped out" as you would be in a leveraged position.

**7. What triggers a switch to Protection Mode?**\
The switch is triggered by the Stratos Engine, which monitors on-chain data via decentralized oracles. If specific volatility thresholds are breached—indicating a crash or severe downtrend—the engine executes a swap to stablecoins.

**8. What are the risks?**\
While Stratos reduces market risk, users face smart contract risk (bugs in code), oracle risk (incorrect data feeds), and systemic risk (stablecoin de-pegging). We mitigate these through audits and rigorous testing, but users should always conduct their own due diligence before depositing.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.strtcoin.xyz/6-frequently-asked-questions/mechanics-and-strategy.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.