Structured Credit for On-Chain Risk

Siprifi transforms prediction market exposures into composable, risk-aware credit instruments — enabling capital-efficient protection markets without leverage or liquidations.

SENIOR TRANCHEMEZZANINEJUNIOR TRANCHEsipUSD EQUITY

The Problem

The Problem with On-Chain Risk Today

Current on-chain risk markets lack the structural sophistication of traditional finance, leaving capital inefficient and risk poorly distributed.

Capital locked until resolution

Prediction market positions remain illiquid until event outcomes are determined.

No maturity differentiation

All exposures treated equally regardless of time horizon or settlement date.

Correlated risk treated independently

Related events are priced in isolation, ignoring systemic dependencies.

Inefficient protection markets

No structured way to hedge or transfer risk without full capital lockup.

Static Capital
Structured Flow

The Solution

From Prediction Markets to Structured Credit

Siprifi applies traditional structured finance principles to on-chain risk, creating a more efficient and resilient system.

Credit Primitives

YES / NO shares as credit primitives

Binary outcome positions are reframed as credit instruments with defined risk profiles and maturity characteristics.

Time Segmentation

Time-based risk stratification

Protection periods are structured into tranches, allowing risk to be priced and traded based on duration.

Risk Decorrelation

Systematic risk decorrelation

Correlated events are identified and structured to prevent cascading failures across the protocol.

NAV Accounting

NAV-based accounting

All positions are valued based on Net Asset Value, ensuring transparent and accurate pricing at all times.

T0
T1
T2
T3
Maturity
Senior (Low Risk)
Mezzanine
Junior (High Risk)

How It Works

Four Steps to Structured Credit

A systematic process that transforms raw prediction market exposure into structured, tradeable credit instruments.

01

Deposit

NO shares / ETH into Vault

Users deposit prediction market NO shares or ETH into Siprifi vaults, providing the underlying collateral for the credit system.

02

Calculate

Risk engine determines credit capacity

The protocol's risk engine analyzes correlations, maturities, and market conditions to calculate effective credit capacity.

03

Issue

Short-dated protection (junior) is issued

Protection instruments are issued against the collateral, with junior tranches absorbing first-loss risk.

04

Represent

sipUSD represents residual equity

sipUSD tokens are minted to represent the residual system equity — the remaining value after all liabilities.

Economic Unit

sipUSD is Not a Stablecoin

Unlike traditional stablecoins that maintain a 1:1 peg to fiat currency, sipUSD represents the residual equity of the Siprifi system — a fundamentally different economic primitive.

Non-redeemable

sipUSD cannot be redeemed directly for underlying collateral. It represents a claim on system equity.

Closed-loop

Operates within the Siprifi ecosystem, maintaining internal consistency and preventing external arbitrage.

NAV-based valuation

Value is determined by Net Asset Value calculation, not external price oracles or market sentiment.

Residual claim

Represents the equity layer — what remains after all senior and junior obligations are satisfied.

NAV Calculation

NAV=Σ AssetsΣ Liabilities
Total Assets$12,450,000
Senior Obligations$8,200,000
Junior Obligations$2,100,000
sipUSD NAV$2,150,000

Supply vs NAV

Total Supply2,000,000 sipUSD
NAV per sipUSD$1.075

No peg. No oracle dependency. Value derived from protocol fundamentals.

Risk Design

Designed for Adversarial Conditions

Siprifi's architecture is built to withstand extreme market conditions without triggering the feedback loops that have collapsed other protocols.

No forced liquidations

The protocol never force-sells collateral. Risk is absorbed through the equity layer, preventing cascading liquidations.

No margin calls

Users are never required to add additional collateral. Position sizing is determined upfront.

No reflexive spirals

The closed-loop design prevents death spirals where falling prices trigger more selling.

Losses absorbed via equity

sipUSD holders absorb residual losses, protecting senior tranches and maintaining system stability.

Stress Scenario Simulation

Bucket A
healthy
Bucket B
stressed
Bucket C
healthy
Bucket D
failed
Bucket E
healthy
4/5
Buckets Intact
92%
NAV Preserved
0
Liquidations

Comparison

How Siprifi Compares

A new category of on-chain risk infrastructure, distinct from existing paradigms.

Feature
Siprifi
Prediction MarketsDeFi Lending
Structured Credit
Maturity Control
NAV Accounting
Risk Tranching
No Liquidations
N/A
Capital Efficiency

Architecture

Built on Proven Financial Primitives

Siprifi adapts battle-tested structures from traditional finance to the unique requirements of on-chain risk markets.

CDS

Credit Default Swaps

Protection against credit events

CLOs

Collateralized Loan Obligations

Tranched credit exposure

CCP

Central Clearing Waterfall

Default management structure

IRP

Insurance Risk Pools

Mutualized risk sharing

Siprifi is not leverage.
Siprifi is structured risk.

Join the next evolution of on-chain risk infrastructure. Built for institutions. Designed for resilience.