Vault Risk Categories

Prime Vaults

Prime Vaults offer conservative, low-risk yields to suppliers. These Vaults allocate supply to maximize risk-adjusted yield while targeting minimal risk of insolvent debt even under extreme market conditions.

Prime Vaults will allocate to markets that meet the following criteria:

• A blend of super high liquidity blue chip collateral.

• High price correlation between supply and collateral tokens.

Some markets may be considered that do not meet these exacting criteria; however, where this is the case, the supply caps and LLTV ratios will be set conservatively.

Balanced Vaults

Balanced Vaults target higher risk-adjusted yield, allocating to a blend of large and lower cap collateralized markets while ensuring exposure to any one asset remains within acceptable bounds. Collateral Selection is based on the following factors:

• Active management of vault supply to market supply ratios to ensure availability of withdrawal liquidity.

• Sufficient liquidity and slippage to perform healthy liquidations in severe market conditions.

Frontier Vaults

Frontier Vaults target the highest risk-optimized yields across Kamino Markets by allocating to higher-volatility markets in exchange for the potential for greater supplier returns. Like all Gauntlet-curated vaults, Frontier Vaults adhere to our collateral evaluation and due diligence requirements that apply across all our vault risk categories:

• Due diligence: All underlying markets must pass Gauntlet’s due diligence process.

• Audits: Certified audits from top industry auditors are required before vault inclusion.

• Active curation: Regular risk parameter reviews ensure vaults continually align with existing market conditions.