Risk Management
The main objective is to mitigate risk throughout the loan cycle, from underwriting to debt recovery
Last updated
The main objective is to mitigate risk throughout the loan cycle, from underwriting to debt recovery
Last updated
Our Risk Framework allows Zharta to offer not only liquidation protection to its Borrowers but also a fair risk-adjusted return to its Lenders.
NFT Valuation
Appraisal Model
Minimizing the appraisal error against real NFT sales
Credit / Underwriting
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Manage Credit Risk through adequate LTV and Maturity, in addition to Debt Limits
Liquidity
Maintain balanced operational liquidity for Loans and Withdrawals
Fraud / Hack
Other Checks
Avoid loan origination from NFTs flagged as suspicious by key marketplaces like OpenSea
Market
(Systemic risk)
Monitor key Crypto/NFT market indicators and, if necessary, reduce underwriting risk
NFT/Collection (Unsystemic risk)
Monitor key risks of Supported Collections and, if necessary, reduce exposure and/or remove NFT Collection
Liquidation
Minimize risk of capital loss through rules-based liquidation, balancing speed and execution