Calculate a simple crypto exposure cap from a maximum acceptable loss and liquidity need.
Dana has a $20,000 learning budget, needs at least $15,000 liquid for scheduled pilots, and wants crypto exposure without derailing the plan. Start with impact, then size the exposure. The common trap is to size from excitement: 'This could 5x, so $6,000 is reasonable.' That ignores the budget's real job. Protect required liquidity $20,000 budget - $15,000 required liquidity = $5,000 maximum flexible pool. Funds needed for committed work should not be exposed to volatile drawdowns. Set acceptable loss Dana decides the pilot plan can absorb a $750 loss without cuts. The acceptable loss is a management decision. It should…
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