Risk Monitoring
Last updated
Last updated
Zharta closely monitors external risks (market-related) and internal risks (Zharta-related) through a set of indicators:
Community activity (unique holders, wallet activity, others)
Liquidity in AMM/Pools for trading and lending
Lending volume in NFT lending markets
Sales volume in NFT marketplaces
Volatility of NFT collection returns
Market capitalization of NFT collections
Social media activity (# followers on Twitter, Discord, Telegram, others)
Key Internal indicators
Minimum Recovery Rate of Credit Portfolio
Total Portfolio LTV
Portfolio Default Rate
Some situations may require temporary risk mitigation procedures or require the removal of a particular NFT collection. The conditions that lead to the corresponded actions are tracked daily by our internal risk team. Risk mitigation procedures may include:
Temporary risk mitigation | Actions |
---|---|
Removal conditions | Actions |
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Extreme price volatility in the entire market or specific to an NFT collection
Massive hack on an NFT collection
Deterioration of key indicators, especially those related to market capitalization, volume, and liquidity
Reduction in max LTV across all maturity offers
Reduction in allowed debt limit per Supported Collection
Negative brand exposure for being associated with a particular NFT collection
Significant and consistent deterioration of key indicators, especially those related to market capitalization, volume, and liquidity
Debt limits are set to zero so that no new origination is allowed
An alert is sent to users on the app and the NFT collection is quickly removed from Zharta's front-end
Effective communication with the community via social media