Risk Isolation — Avadhi
Risk Isolation

Isolated by construction, not by promise.

A shock in one tenor's collateral cannot reach another's. That isn't a policy — it's the architecture.

The Architecture

Pooled markets share risk. Avadhi doesn't.

Pooled Money Markets
SHARED POOL SHOCK USER USER USER

One shared liquidity base. A bad asset in one corner raises borrow costs and liquidation risk for every user in the pool.

Avadhi — Isolated By Tenor
30D CONTAINED 90D 180D

Each tenor settles its own collateral and its own liquidations. A 30-day shock stays a 30-day problem.

How Isolation Holds

Four mechanics, not a slogan.

01

Per-market collateral factors. Each tenor sets its own collateral requirements, tuned to that term's risk.

02

Isolated liquidations. Liquidation engines act within a single market — no cross-market seizure of collateral.

03

No shared insurance fund. Bad debt in one tenor is absorbed by that tenor alone — it is never socialized.

04

Need-to-know privacy. Canton discloses a position to its counterparties and validating parties only — not the whole network.

In The Interest Of Candor

What isolation doesn't solve.

Smart contract risk

Isolation limits blast radius. It does not eliminate a bug in the code itself.

Oracle risk

Each market still depends on accurate price feeds to value its own collateral.

Collateral asset risk

A bad collateral asset can still impair the market that accepted it — just not the others.

Audits

Where we stand.

No code reaches mainnet without a completed audit. This page updates the day a report lands.

Core clearing & note issuance Scheduled
Collateral & liquidation engine Scheduled
Canton DAML templates Scheduled

Underwrite with certainty.