For the complete documentation index, see llms.txt. This page is also available as Markdown.

Indicative risk matrix

The matrix consolidates the principal risks, their severity if they occur, an indicative likelihood, and the mitigations in place. It is indicative: severity and likelihood are judgments, not guarantees. Read it alongside the pages above rather than in place of them.

Risk
What it is
Severity
Likelihood
Primary mitigations

Borrower default

A borrower fails to repay principal or interest

High

Expected over time

Underwriting and scorecard; collateral coverage; first-loss capital; MLA recourse

Default clustering

Multiple correlated borrowers default together, e.g. in a market shock

Critical

Elevated in stress

Concentration and correlation limits set per pool by the delegate; diversification; first-loss sizing

Liquidity / redemption run

Clustered withdrawals meet actively deployed capital

High

Moderate; high in stress

Disclosed withdrawal queue with position and estimated timing; liquidity-reserve pools where the delegate has elected to maintain one; staged fulfillment

First-loss inadequacy

Losses exceed the delegate's first-loss layer

High

Situational

First-loss sizing disclosed per pool; senior lenders informed of the cushion they hold

Collateral valuation / liquidation

Collateral is mispriced or cannot be liquidated at model value

High

Market-dependent

Chainlink price feeds for coverage monitoring; per-default liquidation limit

Concentration

Over-exposure to one borrower, sector, or strategy

High

Controllable

Portfolio controls and limits set per pool by the delegate; disclosure of book composition

Smart-contract failure

A bug or exploit affects pool, loan, or token contracts

Critical

Low if audited, unknown otherwise

Module separation; least-privilege, multisig-and-timelock-gated access control; audit and bug bounty status

Cross-chain / bridge

The supply invariant fails or bridged assets are compromised

High

Unverifiable until published

Burn-and-mint mechanism moving 1M QFI from TRON to BSC; verified contract addresses

Custody / settlement

Loss or failure at a custody or settlement partner

High

Partner-dependent

SafeHeron

Regulatory / securities

The token or the pooled product is characterized as a regulated instrument

Critical

Material

KYC/permissioning; jurisdictional exclusions; marketing discipline; legal opinions

Treasury reflexivity

Operations depend on selling QFI into weakness

High

Bear-market

Stablecoin operating reserve policy confirmed; disclosed runway figures

Delegate / key-person

A delegate underperforms, acts in conflict, or departs

Medium–High

Situational

First-loss alignment; fee and conflicts disclosure; delegates admitted and vetted by the protocol's administrators

Legal recovery

Cross-border enforcement is slow, costly, or partial

Medium–High

On default

MLA, cross-default, collateral; Panama

Token-market

QFI is volatile and has no cash-flow claim today

High

Ongoing

Fixed supply; verifiable burn; honest disclosure that QFI is not a claim on yield

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