White belt
Where every collateral starts, whatever it is. Tightest cap on the book and the widest liquidation buffer.
Max LLTV50%
Supply cap$25K
Everything, on arrival
Risk framework
A collateral
earns its belt.
Assets are not listed, they are ranked. The belt fixes the LLTV and the cap. Moving up takes evidence and a quarter of clean behaviour. Moving down takes one incident.
Green belt
A priced feed plus a fallback that can disagree. Entry needs a quarter without an oracle gap.
Max LLTV65%
Supply cap$120K
RWAs and mid-cap tokenized equities
Brown belt
Two independent feeds, real venue depth at cap size, and a graded drawdown test the liquidation engine cleared.
Max LLTV77%
Supply cap$400K
Majors and the large tokenized equities
Black belt
Reserved for collateral with a record on this chain, not a thesis about one.
Max LLTV86%
Supply cap$1.5M
The proven core
Why a ladder and not a list
A list of approved collateral says nothing about the distance between the safest and the riskiest thing on it. A ladder does. Four ranks, each with a fixed LLTV and a fixed cap, so where an asset sits is the summary of its risk.
The five gates
A listing passes the same sequence every time. A price, from at least one feed we did not build, with a fallback that can disagree independently. A venue, with real depth measured at the size the cap would allow. A drawdown test, where we walk the price down and confirm the liquidation engine clears the book without touching another market. A cap, sized so a full liquidation is a fraction of daily volume rather than a multiple of it. And a named curator who answers for the parameters.
Isolation is the containment
Each market carries its own oracle, LLTV and cap. A break in one asset produces bad debt in that market and nowhere else. That is a limit on the blast radius, not a promise that a loss cannot happen.
What we will not do
We will not raise an LLTV because an asset is popular, will not lift a cap without redoing the depth measurement, and will not override the parameters at liquidation time. Whatever the belt says is what the contract does.
The honest risks
A bad oracle can create bad debt faster than any liquidation can clear it. Very high utilisation delays a withdrawal until a repayment or a liquidation arrives, which is a delay and not a default. A newly listed asset at white belt is newly listed no matter how it trades elsewhere.