Modifiers
The modifiers applied on top of the base rating.
Collateralization and reserve coverage
Reserve coverage and insurance vehicles measured against outstanding token supply, and how that ratio moves the rating up or down.
Governance as a rating modifier
4 items
Market adoption and market cap peers
Market capitalization relative to category peers, used as a proxy for market confidence and issuer incentive to maintain the asset.
Operational security in asset ratings
7 items
Peg track record and deviation history
A token's historical peg performance, measured by volatility, deviation frequency, and drawdown severity.
Regulatory cover and bankruptcy remoteness
The scope and relevance of licenses held by the issuing entity, and bankruptcy remoteness across issuer and custodian structures.
Reserve management and operator track record
The operational competence and track record of those managing productive reserve assets, where reserves are actively managed.
Reserves transparency and attestations
How reserve adequacy is demonstrated, through on-chain verification, audit attestations, and third-party assurance.
User rights and redemption terms
The clarity and enforceability of redemption terms, asset segregation, and beneficial ownership in issuer documentation.