Kyoko
  • Kyoko Introduction
  • HOW IT WORKS
    • Peer-to-Pool NFT Lending Platform
      • P2P NFT Lending Introduction
        • As Lenders: Earning Interest
        • As Borrowers: Get Instant Loans
        • NFT as the collateral
        • NFT Price Discovery
      • Who can create the pools?
        • The Blue-Chip Pools
        • The Shared Pool
      • Risk Models: Health factor or Time-based
        • Risk Framework
        • Dual Rates
        • NFT Risk Parameters
      • Pending Liquidation
        • Auction liquidation
        • Bad Debt
      • Security and Audits
    • Cross-Chain GameFi Assets Lending(CCAL)
      • How to use Cross-Chain GameFi Assets Lending?
      • FAQ for CCAL
  • TOKEN
    • Token distribution
    • Understanding $KYOKO in P2P NFT Lending
      • Staking (Shared income)
        • Staking your $KYOKO
        • Claiming shared income
      • Voting
        • Vote Locking
        • Governance Mechanism
        • Snapshot
        • Proposals
    • Vesting
    • Stake
      • Liquidity Mining
      • How to start staking?
    • Business Model
    • Governance
      • KRCs
      • KIPs
      • Governance forum
      • Voting(Snapshot)
  • Roadmap
  • Security and auditing
  • Contact
  • DEPLOYED CONTRACTS
    • P2P NFT Lending
    • Cross-Chain GameFi Assets Lending(CCAL)
  • TEST
    • P2P NFT Lending testnet
    • Cross-Chain GameFi Assets Lending(CCAL)
  • COMMUNITY
    • Twitter
    • Telegram
    • Discord
    • Medium
    • Github
    • TERMS OF SERVICE
Powered by GitBook
On this page
  • Risk Framework
  • Asset Risk
  • Liquidity Risk

Was this helpful?

  1. HOW IT WORKS
  2. Peer-to-Pool NFT Lending Platform
  3. Risk Models: Health factor or Time-based

Risk Framework

PreviousRisk Models: Health factor or Time-basedNextDual Rates

Last updated 2 years ago

Was this helpful?

Risk Framework

With billions of locked assets, Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) have boomed in recent years.

The industry has been forming various standards to manage the emerging risks related to the hyper-connected ecosystem. Kyoko will be audited by 3-4 well-known audit firms as detailed in.

The following documentation analyses the fundamental risks of the protocol and describes the processes in place to mitigate them. A Kyoko Market Risk Assessment has been produced by the quantitative modeling team of Kyoko. The Safety Module have been stress tested via agent-based simulation. The simulations show that the model can remain solvent under extreme market conditions, exhibiting proper risk management. As a result, Kyoko provided some parameter suggestions to reduce insolvency risk further.

If you have any questions, join us on Discord; our team and community members look forward to helping you understand risk management procedures.

Asset Risk

Asset Risk goes over the implications of adding a new asset. Kyoko's methodology quantifies the risks of each asset assessing its fit as well as the appropriate risk parameters.

Liquidity Risk

Liquidity Risk presents the liquidity risk mitigation strategies in place validating them by an analysis of the historical utilization of the protocol.

Security & Audits