This page provides an overview of the risk management procedure of products issued through Solv V3.
Solv’s risk management team combines a traditional financial risk management framework with blockchain technology to monitor issuers’ performance. Before any funds are issued, Solv will conduct thorough due diligence into the issuer’s financial health and uses of the funds.
The proceeds of a fund will be sent to a neutral, third-party protocol to manage the use of funds. At maturity, funds will be automatically withdrawn from the protocol to repay the investors.
Blockchain offers transparent and immutable transaction records, providing investors with clear insights into the historical transactions of the issuer to identify the creditworthiness of the issuer and monitor capital uses.
Solv offers optionality for collateralization or IOU statements embedded in the SFT for issuers who wish to enhance the credit profile of their issuances.
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