Definitions
In plain terms
It can cap constituent, sector, country, risk, turnover, or tracking deviations while preserving the desired theme.
Technical
Each constraint requires metric, reference portfolio, lower and upper boundaries, units, inclusivity, priority, feasibility policy, tolerance, and effective version.
Scope
Constraints can conflict, so a methodology must define relaxation or failure behavior.
Examples
- A governed methodology records tilt constraint with its source, cutoff, units, parameters, and effective version.
Common misconceptions
- Tilt Constraint does not have one universal implementation without the declared methodology, data basis, and constraints.
Concept relationships
Prerequisites
Where this concept is used
Evidence and governance
- Fintech Builder Glossary Definition Contract The Fintech Builder · internal governed contract
Supports: preferred label, short definition, technical definition
Limits: Defines governed platform behavior rather than claiming these policies are universally prescribed by external McClellan methodology.
- Reviewed by
- fintech-builder-batch-004
- Last reviewed
- 2026-07-27
- Next review
- 2027-07-27
- Record status
- evidence reviewed
This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.