Collateralization under stress
M^0's assessment for RD-F-068 — scored not_applicable on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
No on-chain LTV/collateralization ratio stress simulation applicable. M^0 uses off-chain T-bill collateral with Validator multi-sig attestation. If a Minter fails to update collateral within UPDATE_COLLATERAL_INTERVAL, their effective on-chain collateral is treated as zero (penalty mechanism). This is a different risk model from an on-chain lending collateralization ratio. PD-024: not applicable for non-lending protocols.
Sources #
- DocsM0 Documentation — Collateral SystemM0 collateral system — if Minter fails to update collateral within UPDATE_COLLATERAL_INTERVAL, effective on-chain collateral treated as zero; penalty mechanism describedretrieved 2026-05-16
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →