Risk Framework

The composability of the DeFi ecosystem implies risks from an individual component flow into all dependent systems. Currencies are at the heart of the Multi-Chain Lend (MCL) protocol as it enables operations and hold the assets and liabilities of the protocol.

This documentation, developed by the Multiplier Team, focuses on the risk assessment for assets supported by Multi-Chain Lend (MCL). The risk assessment considers market, counter-party and smart contract risks for the assets selected for Multi-Chain Lend (MCL) protocol, aiming to contribute to higher risk standards within DeFi.

When adding an asset to the protocol, significant controls are required to ensure the asset will add more value than risk. Only assets with a worthy product and significant community are considered. The asset risk assessment explores whether the asset represent a reasonable amount of risk for the protocol, calibrating the asset parameters to mitigate those risks.

The following assets have been considered, with more assets to be considered in the near future:

1. BNB


3. BTC



6. DAI

7. ETH


9. ADA 10. DOT 11. LTC 12. BCH