Risk Framework
Guardrails that reduce the chance of blow-ups
DeFi risks can’t be removed — but they can be scoped, limited, monitored, and communicated clearly.
Collateral policy
Start with bluechip collateral only. Expand slowly, with caps and disclosure.
Caps & concentration limits
Per-market caps and dependency limits reduce blast radius.
Monitoring & playbooks
Alerts for utilization spikes, oracle anomalies, and liquidation health.
Transparency
Public methodology and on-chain links for allocations and parameter changes.
What “Prime” means
- • Conservative collateral universe
- • Tight caps and diversification requirements
- • Preference for high-liquidity markets
What can still go wrong
- • Smart contract bugs
- • Oracle failures
- • Liquidation failures in extreme volatility