> For the complete documentation index, see [llms.txt](https://docs.3adao.org/3a-protocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.3adao.org/3a-protocol/protocol-documentation/euro3-coin/watchdog-bot.md).

# WatchDog Bot

The bot runs automatically to adjust the HF for Redemptions based on EURO3 under peg deviation from  EURO/USD price.&#x20;

If EURO3 is within 2% away from the peg then the HF is set to 1.1.

If the EURO3 price is more than 2% under pegged then the HF for Redemptions is increased by 0.5 every check till max HF is reached. Once the EURO3 price reaches the peg within 2% deviation, the HF gets set back to 1.1.&#x20;