DDH1 applies to scenarios where MR9 is the dominant risk among all market risks (e.g. in a stablecoin depegging situation).Step 2: dynamic hedging process (DDH2) DDH principles are used to reduce the overall risk in portfolio margin mode by adjusting the positions of perpetual and expiry futures. DDH applies options positions when spot shock risk (MR1) is largest among all risks (e.g.