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 Risks | Risk Module | Goals / 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 | |
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 |
Last updated