Risk Framework
Risk Framework v2.2
The Vector Risk Framework — deterministic scoring for DeFi yield vaults.
The Vector Risk Framework is a deterministic scoring system that decomposes vault risk into three independent vectors. Every input is on-chain or from public records. Same inputs, same score. No editorial discretion, no manual overrides, no pay-to-play.
Composite Formula
Score = 0.4 × Asset + 0.4 × Platform & Strategy + 0.2 × Governance| Vector | Weight | Measures |
|---|---|---|
| Asset Composition | 40% | Token quality, oracle reliability |
| Platform & Strategy | 40% | Protocol maturity, audit coverage, strategy complexity |
| Governance Controls | 20% | Timelocks, immutability, exit windows |
Design Principles
- Deterministic — pure function of observable inputs. No analyst judgement, no manual overrides on the base model.
- Conservative — missing data triggers worst-case assumption. No audit = score zero. Unknown strategy = neutral Core score (7).
- Version-specific — audits match the exact deployed version. An audit of V2 does not cover V3. New deployments start fresh on Lindy.
- Continuous — scores recomputed every 30 minutes. No quarterly reviews.
Worked Example
Aave V3 USDC on Ethereum (simple lending):
| Component | Score | Notes |
|---|---|---|
| Asset (USDC, Prime tier) | 10.0 | Prime stablecoin, Chainlink oracle (10) |
| Lindy score | 9.7 | Live since Jan 2023 (~3 years) |
| Audit density | 9.0 | 14 audits across 8 firms |
| Strategy complexity | 10.0 | Simple lending |
| Platform base | 9.57 | (9.7 + 9.0 + 10.0) / 3 |
| Dependencies | none | — |
| Platform final | 9.57 | No adjustments |
| Governance | 9.0 | 7-day timelock |
Composite: 0.4 × 10.0 + 0.4 × 9.57 + 0.2 × 9.0 = 9.63 → Prime
Score Interpretation
| Range | Tier | Profile |
|---|---|---|
| 8.0 – 10.0 | Prime | Mature code, multiple audits, simple strategy, timelocked governance |
| 5.0 – 7.9 | Core | Audited with shorter track record, moderate complexity, or permissive governance |
| 0.0 – 4.9 | Edge | Unaudited, <6 months live, complex aggregation, or recent incident |
See Tiers & Disqualifications for hard override rules.