Historical bad-debt events

Polymarket's assessment for RD-F-067 — scored not_applicable on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.

Evidence summary #

No bad debt mechanism exists. All positions are fully collateralized 1:1 via pUSD locked in Gnosis CTF contract. UMA dispute resolution involves bond forfeiture between proposer/disputer, not protocol-socialized losses. The UMA DVM 'Unknown/50-50' outcome returns $0.50/token to both parties — this is an edge case, not bad debt. N/A per taxonomy §Cat 4 PD-024 (lending-only).

Sources #

Docs
Polymarket docs — ResolutionUMA resolution docs: bond mechanics — winner receives original bond + half of loser bond; 50-50 outcome returns $0.50/token. No protocol loss.retrieved 2026-04-29
Internal
Polymarket profile §7 — no bad debt mechanismTaxonomy §Cat 4 PD-024: bad debt events is lending-only.retrieved 2026-04-29

Methodology #

Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.

See the full factor methodology and distribution across all protocols →

rubric_version v1.7.0 protocol polymarket factor RD-F-067 score not_applicable collected_at 2026-04-29 16:25:39