Warning limit

A warning limit gives notice before a breach. If an issuer cap is 10%, a warning at 8% tells the manager that two points remain. A policy may set it, or the team that monitors the policy may add it.

Crossing a warning bound is not a breach and needs no remediation. It is a prompt to manage the position, avoid new purchases or plan a sale. Warnings that fire every day suggest the bound sits too close to the limit.

In Acclimetry, a value past a warning bound but inside the hard bound returns a warning (ABOVE_WARNING_MAXIMUM or BELOW_WARNING_MINIMUM). Example: with a hard minimum of 10 and a warning minimum of 20, a value of 15 is a warning. Its headroom is −5 to the warning bound and +5 to the hard bound (warning bands and tolerances).