> For the complete documentation index, see [llms.txt](https://resources.vaults.sentora.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://resources.vaults.sentora.com/vault-details-and-risk-reports/asset-risk-reports.md).
# Asset Risk Reports
## Maple Finance
1. Well-established protocol (mid 2000), having transitioned from [unsecured lending to market-makers during the 2021 season](https://www.theblock.co/post/194907/maple-finance-releases-version-2-0-after-36-million-default-on-platform) to overcollateralized lending
2. Access to large number (\~30) of institutional investors, leading to a large loan book (\~1bn)
3. RWA (loans initiated and agreed to offchain), hence diversified source of yield from Money-market yields \*
4. Active 24/7 risk-management, with conservative LTV, LLTV, time to cure, and other risk parameters
5. Transparent, on-chain monitoring for all loans and investments
**Risks:**
* Large excess (unborrowed) liquidity (\~2bn) invested mostly in Money-markets, negating the diversification. While this liquidity can be a plus, allowing investors to withdraw money without waiting for underlying loans (average maturity of 1.6mo) to mature, it takes away from the diversification score. This needs to get monitored.
* Market risk for either the main loan book (rapid collateral deterioration), or for investments in various protocols exposed to low quality collaterals. This is mitigated by Maple’s risk management with conservative risk underwriting and deployments.
See Full Risk Report
## Prime / Figure
1. Prime token on Solana derives its yield from the financing paid by originators of Helocs (Home Equity Line of Credit) from origination time to securitization (average \~42 days, range 0-23 months per last securitization).
2. The financing paid by originators is sourced from the interest paid in high quality collateralized first or second-lien loans to homeowners with good income and credit scores ("Prime" borrowers).
3. The financing is obtained in hourly dutch auctions, where money is lent (Helocs bought) against almost-fully drawn Helocs. The repo loans are overcollateralized.
4. DemoPrime Trust II holds the Heloc collateral and is responsible for ensuring their performance.
5. Figure Lending, LLC, a subsidiary of Figure Technology Solutions, Inc., is one of the originators, and the repo counterparty to the Trust. It originated 21% of the last securitization (FIGRE Trust 2026-HE1)
6. There are existing warehouse facilities in place with GS and Jeffries for above financing. DemoPrime is augmenting it with DeFi lenders.
7. Almost all loans waiting to be securitized are performing (no missing payments). DemoPrime has indicated they have the option to make any Heloc with >60day-delinquency ineligible for financing on their platform
**Risks:**
* Underlying credit risk - There is a chance that a majority of performing loans during the average 45-day pre-securitization window may rapidly become delinquent and Demo Trust cannot auction them fast enough or put them back to originator.
* Extension risk: Securitization pipeline stops, so \~45-day financing becomes 10-30 year financing.
* Insufficient on-chain liquidity for quick unwind of looping strategies
* Blockchain, smart-contract, bridging, and technical risks
See Full Risk Report
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