EP systems are structured safeguards that prioritize capital preservation, especially in volatile or declining markets. These may include automated stop-losses, volatility-adjusted position sizing, or systematic hedging frameworks. EP structures are common in mandates for institutional investors seeking downside protection. They are particularly relevant in quantitative, macro, or multi-manager platforms where capital allocation may be conditional on adherence to EP rules. EP systems are closely reviewed during Operational Due Diligence (ODD), and often work in tandem with Hard Stops, Stress Testing, and VaR controls.