Paddle Finance
  • Introduction
  • V1 Liquidity Solution
    • Basket Collateral
    • Collateral Loan
      • Peer-To-Peer Lending
      • Peer-To-Crowd Lending
    • OTC Exchange
    • Parameters
  • V2 Liquidity Solution
  • Peer-To-Pool Lending
    • Market List
    • Interest Bearing Token (iToken)
  • Risk Framework
    • Asset Risk
      • From Risks to Risk Parameters
      • Risk Parameters
    • Liquidity Risk
      • Utilization
      • Interest Rate Model
  • Liquidation
  • Price Oracle
  • PADD Liquidity Incentives
  • BGT Emission + Beratrax Integration (Thoon)
  • User Guide
    • Borrower
    • Lender
  • Paddle Battle
    • Mechanics
    • Revenue
    • Referral System
  • Governance
    • PADDenomics
    • About PADD
    • PADD Reward
    • Fee Collection & Distribution
  • User Guide
    • Borrower
    • Lender
  • OTC Trade
  • API Documentation
    • API Guide
    • Loan Endpoints
    • OTC Endpoints
    • REST Endpoints
    • Tutorials
      • Source
      • Parameter Explanation
      • Loan - Create order
      • Loan - Cancel Order
      • Loan - Lend
      • Loan - Repayment
      • Loan - Liquidate
      • OTC - Create OTC Order
      • OTC - Cancel Order
      • OTC - Take Order
  • Links
    • Website
    • Twitter
    • dApp (Mainnet)
    • Audit Report_V1
    • Brand Kit
Powered by GitBook
On this page

Risk Framework

As decentralized finance (DeFi) continues to gain momentum, operating through open and borderless protocols introduces new layers of risk—particularly in terms of security, volatility, and protocol integrity.

At Paddle, we take a comprehensive approach to risk management, implementing safeguards at both the infrastructure and protocol levels. In addition to undergoing independent smart contract audits by top firms such as PeckShield, we are developing an internal risk assessment framework to detect malicious behavior, irregular usage patterns, and vulnerabilities under extreme market conditions.

To further enhance user protection, Paddle has introduced sophisticated risk parameters across our lending pools, including isolation of asset exposure, health factor monitoring, and dynamic interest rate adjustments.

This documentation outlines the key risk factors present in the isolated-margin NFT loan market and details the strategies and mechanisms Paddle employs to mitigate them.

PreviousInterest Bearing Token (iToken)NextAsset Risk

Last updated 29 days ago