Risk Management

The main objective is to mitigate risk throughout the loan cycle, from underwriting to debt recovery

Our Risk Framework allows Zharta to offer not only liquidation protection to its Borrowers but also a fair risk-adjusted return to its Lenders.

Key RisksRisk ModuleGoals / Actions

NFT Valuation

Appraisal Model

Minimizing the appraisal error against real NFT sales

Credit / Underwriting

Manage Credit Risk through adequate LTV and Maturity, in addition to Debt Limits


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


(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


Minimize risk of capital loss through rules-based liquidation, balancing speed and execution

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