Philidor Docs
Risk Framework

Platform & Strategy (40%)

Protocol maturity, audit coverage, strategy complexity, and incident decay.

Measures the probability that the protocol's code or strategy architecture causes loss. Three sub-components are averaged into a base score, then multiplicatively adjusted by dependency safety factors and incident decay caps.

baseScore = (lindyScore + auditScore + strategyScore) / 3
platformScore = baseScore × depSafetyFactor₁ × depSafetyFactor₂ × …

Lindy Score

Continuous exponential function measuring protocol maturity from the deployment timestamp of the specific contract version in use:

lindyScore = 10 × (1 − e^(−days/365))
Time LiveScore
6 months~3.9
1 year~6.3
2 years~8.6
3+ years~9.5+
No launch date0

Audit Density

Measures the breadth and quality of security audits. Audit contests (Code4rena, Sherlock) receive a premium for reviewer diversity. Capped at 10.

ConditionScore
No audit0 (disqualified — forces Edge tier)
1 standard audit5 (base 4 + 1)
Each additional firm+1
Each contest+2

Example: Morpho with 25 audits across 8 firms including contests: score capped at 10.

Strategy Complexity

Auto-derived from adapter metadata. A simple lending position has a fundamentally different attack surface than a multi-strategy vault routing across 3+ protocols. Unknown types default to 7.

Simple (low attack surface)

TypeDescriptionScore
LendingSingle-asset lending pool (Aave, Compound)10
SavingsERC-4626 wrapper over single yield source (sUSDS, sDAI)9
StakingLST wrappers (Lido, Rocket Pool)9
Isolated LendingIsolated collateral markets (Morpho Blue)9

Moderate (some complexity)

TypeDescriptionScore
Multi-MarketCurator-managed multi-market (MetaMorpho)7
RestakingAVS delegation (EigenLayer)7
Auto-CompoundSingle-protocol auto-compounder (Beefy)6
Fixed RateYield tokenization (Pendle)6
Liquidity ProvisionLP position management (Curve, Uniswap)5
Points FarmingPoints-focused strategies5

Complex (high attack surface)

TypeDescriptionScore
Yield AggregationMulti-strategy routing across 2+ protocols (Yearn)4
Leveraged LendingLeveraged lending loops3
Delta NeutralBasis trade strategies3
Options/DerivativesOptions writing, structured products, DOVs2

Dependency Safety Factors

A vault inherits the risk of every protocol it depends on. Safety factors are multiplicative — two Core dependencies: 0.80 × 0.80 = 0.64, not 0.80 + 0.80.

Dependency TierScore RangeFactor
Prime (8+)8.0+× 0.95
Core (5–7.9)5.0 – 7.9× 0.80
Edge (<5)< 5.0× 0.50

Example: A Yearn vault depending on Aave (Prime, ×0.95) and Curve (Core, ×0.80): baseScore × 0.95 × 0.80 = baseScore × 0.76

Incident Decay

Security incidents impose hard caps on the platform score. The cap decays as the protocol demonstrates post-incident stability.

Time Since IncidentCapMax Tier
< 30 days2Edge
30 – 90 days5Core
90 – 180 days8Low Prime
> 180 daysNoneFull score

Worked Examples

Aave V3 USDC (lending):

  • Lindy: 9.7 · Audit: 9.0 · Strategy: 10.0
  • Base: (9.7 + 9.0 + 10.0) / 3 = 9.57
  • Dependencies: none
  • Platform: 9.57

Yearn multi-strategy (aggregation):

  • Lindy: 6.3 · Audit: 8.0 · Strategy: 4.0
  • Base: (6.3 + 8.0 + 4.0) / 3 = 6.10
  • Dependencies: Aave (×0.95) + Curve (×0.80)
  • Platform: 6.10 × 0.95 × 0.80 = 4.64

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