# Risk Manager

The Risk Manager ensures the integrity of ZenChain platform design and performance with robust, timely risk management.

The Risk Manager smart contracts liquidate Traders who are at risk of bad debts to protect Lender assets, and performs the following platform risk management functions:

* Calculation of Account Health (liquidation threshold)
* Management of Loan-To-Value collateral risk parameter
* Management of Leverage Factor risk parameter&#x20;
* Management of Liquidation Threshold risk parameter
* Settlement of Trader PNL (trade ledger)
* Settlement of debt accrued vs collateral
* Liquidation fee payment for liquidators

Changes to risk management parameters and policies can be done via protocol governance.
