# Exposure Protector

Defensive rebalancer that trims skew and protects exposure.

## Best Used When
- one side of the book dominates the account
- Hermes wants to reduce imbalance
- the market is still tradable, but caution is needed
- controlled rebalancing is more important than new alpha

## Avoid When
- the market is thin or chaotic
- the venue is unstable
- Hermes wants a pure entry strategy
- frequent churn would be too expensive

## How It Works
- The strategy watches wallet drift and chooses the side needed to move the wallet back toward the target ratio.
- `rebalance_target_ratio` is a value-share target for base, not a price target.
- `rebalance_step_ratio` controls how far the strategy moves per action, but the actual side choice also depends on the current drift and hysteresis.
- `min_rebalance_seconds` blocks repeat actions for a minimum wall-clock period.
- `min_price_move_pct` blocks a new order if price has not moved enough since the last one.
- `trail_distance_pct` sets the limit order distance from the current price once a side has been chosen.
- `report()` and `render()` show the live drift, anchor, and cooldown state.

## Parameters
- `trail_distance_pct`: Distance from the current price for the rebalance limit order.
- `rebalance_target_ratio`: Target base value share between `0.0` and `1.0`. `0.5` means balanced by value.
- `rebalance_step_ratio`: Fractional move size per action. Larger values rebalance faster but can churn more.
- `min_order_notional_quote`: Minimum quote notional for one action.
- `max_order_notional_quote`: Optional hard cap on quote notional for one action.
- `order_spacing_ticks`: Declared in the schema, but currently not referenced by the execution path.
- `cooldown_ticks`: Tick-based pause after a successful order.
- `min_rebalance_seconds`: Wall-clock cooldown between rebalance actions.
- `min_price_move_pct`: Minimum price movement required before the strategy will place another order.
- `balance_tolerance`: Allowed deviation from the target before the strategy considers the wallet meaningfully out of balance.
- `debug_orders`: Enables order-placement debug logging.

## Hermes Policy Mapping
- `risk_posture` controls caution vs aggression.
- `priority` controls urgency and cadence.
- In current code, `apply_policy()` rewrites `trail_distance_pct`, `rebalance_step_ratio`, `min_rebalance_seconds`, and `min_price_move_pct`.

## Notes
- This strategy is passive until Hermes enables it.
- It should protect and rebalance, not decide regime.
- Trader derives concrete execution values from policy.
- `report().supervision` should be interpreted as a defensive attachment signal, not as a preferred replacement for a healthy grid during persistent trend continuation unless imbalance is genuinely severe.
- live fee rates are used directly, and quote notional is the canonical sizing unit.
- rebalance sizing now uses the shared strategy sizing helper so fee-aware quote bounds behave consistently with the other strategies.

## Useful Example
```json
{
  "trail_distance_pct": 0.025,
  "rebalance_target_ratio": 0.55,
  "rebalance_step_ratio": 0.2,
  "min_order_notional_quote": 15,
  "max_order_notional_quote": 60,
  "order_spacing_ticks": 1,
  "cooldown_ticks": 2,
  "min_rebalance_seconds": 120,
  "min_price_move_pct": 0.004,
  "balance_tolerance": 0.04,
  "debug_orders": false
}
```

This is a conservative rebalancer that moves in smaller chunks, waits between actions, and only reacts when price has moved enough to justify another trim.