Market Risk Rating
Each market is evaluated on three variables:| Variable | Description |
|---|---|
| Market LLTV | Liquidation Loan-to-Value. Higher LLTV = less buffer before liquidation = more risk. |
| Market TVL | Total Value Locked in the market. Larger markets have absorbed more real usage and volatility. |
| List date | How long the market has been live. Newer markets are treated as less battle-tested. |
Tiers
🟢 Low Risk
🟢 Low Risk
All three conditions must be met:
- LLTV ≥ 86%
- Market TVL > $10M
- Market has been live for at least 3 months
🟡 Medium Risk
🟡 Medium Risk
All three conditions must be met, and the market must not already qualify as Low risk:
- LLTV ≥ 77%
- Market TVL > $1M
- Market has been live for at least 1 month
🔴 High Risk
🔴 High Risk
Any market that does not meet the criteria for Low or Medium risk.Typical causes: aggressive LLTV (below 77%), small TVL, or a very recently listed market.
Vault Risk Rating
Vaults are evaluated on three variables:| Variable | Description |
|---|---|
| Total Supplied | Total USD value deposited into the vault. Larger vaults signal stronger user confidence and liquidity depth. |
| Market exposure | The share of the vault’s allocation directed to Low-risk markets. Higher concentration in Low-risk markets = safer overall profile. |
| List date | How long the vault has been live. Newer vaults are treated as less battle-tested. |
Tiers
🟢 Low Risk
🟢 Low Risk
All conditions must be met:
- Total Supplied > $10M
- At least 70% of market exposure is in Low-risk markets
🟡 Medium Risk
🟡 Medium Risk
All conditions must be met, and the vault must not already qualify as Low risk:
- Total Supplied > $1M
- At least 30% of market exposure is in Low-risk markets
🔴 High Risk
🔴 High Risk
Any vault that does not meet the criteria for Low or Medium risk.Typical causes: small total supplied, heavy allocation to Medium- or High-risk markets, or a recently launched vault.
Risk tiers are structural heuristics, not predictions. A Low-risk market can still suffer losses from oracle failure, smart contract bugs, or extreme collateral price moves. Always read the underlying parameters before depositing.