Atlendis v2
  • πŸ‘‹Introduction
  • πŸ—žοΈWhitepaper
  • πŸ”“Safety & Audit
  • Protocol
    • 🎨What Sets Atlendis Apart
      • RCL Lending Pools
      • Rate Discovery
      • Non Fungible Positions
    • 🏦Atlendis Borrowers
    • πŸ›£οΈUse Cases
      • Invoice Financing
      • Ramps and Cash Advances
      • Revenue Based Financing
      • Trade Financing
      • Buy Now Pay Later
      • Emerging Market Credit
    • ⚠️Risk Management
  • User manual
    • πŸ§‘Lender
      • πŸ§™Lender Actions
      • ❓Lender FAQ
      • ⏩Tutorial
    • 🏒Borrower
      • πŸ€Έβ€β™‚οΈBorrower Actions
      • 🏦Borrower FAQ
      • πŸ”©Integration
  • Developers
    • πŸ€“Protocol Overview
    • πŸ‘©β€πŸ’»Core concepts
      • Order Book Implementation
      • Position accounting vs. Pool accounting
      • Interests accrual and position accounting granularity
    • πŸ’»Technical integration
      • Deployment procedures
      • Protocol gas consumption
      • Tokens integration considerations
    • πŸ“‘Smart contract interfaces
      • Revolving Credit Line
        • IRevolvingCreditLine
        • IRCLBorrowers
        • IRCLGovernance
        • IRCLLenders
        • IRCLState
      • Roles Manager
        • IRolesManager
        • IStandardRolesManager
      • Error messages
    • ↗️Deployed Contracts
    • πŸ“ˆAtlendis Gateway
  • Governance
    • πŸ§‘β€βš–οΈGovernance
    • πŸ‘›Multisig
  • glossary
    • πŸ§‘β€πŸ«Core concepts
    • πŸ“ŠFrontend Indicators
  • Legal
    • βš–οΈTerms of Use
    • βš–οΈLegal Notice
    • βš–οΈPrivacy Policy
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  • Credit Risk
  • Liquidity Risk
  1. Protocol

Risk Management

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Last updated 1 year ago

Credit Risk

The Atlendis protocol operates as an under-collateralized lending platform, which inherently carries higher credit risk compared to its over-collateralized counterparts. However, the protocol includes various components to mitigate credit risk:

  • Whitelisting of Candidates: Only institutional borrowers can be whitelisted on the Atlendis protocol, as their reputation is at stake, reducing the risk of default.

  • Granular Control: Lenders on the Atlendis protocol have the ability to individually select their borrowers, choose their preferred lending rate, and manage their investment portfolio and risk profile. This allows them to avoid undesired risk from being outvoted during loan approval.

  • Atlendis' Legal Framework: Further details about the legal framework can be found in the .

Liquidity Risk

As with any DeFi protocol, the Atlendis protocol faces liquidity risk. A reduced amount of liquidity on the Atlendis protocol would affect both borrowers and lenders. A lack of liquidity on the Atlendis protocol would restrict borrowers in their borrowing capacity and limit the possibility for lenders to exit the pool while their position is actively borrowed.

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Legal Section