Philidor Docs
Risk Framework

Asset Composition (40%)

How underlying token quality and oracle reliability determine the asset vector score.

The underlying asset defines the irreducible risk floor. No amount of smart contract security eliminates depeg, liquidity crisis, or oracle failure risk.

Asset Tier Classification

Assets are classified into three tiers. Spot exposures (depositor's own asset) score higher than collateral exposures (backing a lending position) due to additional liquidation risk. Unknown assets default to Edge.

TierExamplesSpot ScoreCollateral Score
PrimeETH, WETH, USDC, USDT, WBTC, cbBTC, wstETH, rETH, weETH109
CoreDAI, USDS, sDAI, sUSDe, USDe, GHO, FRAX, LUSD, LBTC, LINK, ARB86
EdgeUnlisted tokens, low-liquidity assets, newer wrappers53

If an exposure relies on a price oracle, the asset score is capped at the oracle quality score. This is a hard cap — no other factor can override it.

Oracle ProviderScoreTier
Chainlink10Prime
Chronicle9Prime
Lido8Prime
API38Prime
Pyth7Core
Redstone7Core
Exchange Rate7Core
Custom3Edge
Unknown2Edge

Example: A vault holding Prime-tier USDC (spot score 10) but using a Pyth oracle (score 7) would have its asset score capped at 7.

Multi-Asset Vaults

For vaults with multiple collateral positions (e.g., Morpho vaults with several lending markets), the asset score is the weighted average across all positions. The oracle weakest-link cap applies per position before averaging.

See Oracle Providers for the full provider reference.

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