Underwriting Example

Let’s walk through a real-life example of a borrower requesting a credit line. The user holds the following positions:

• Locked position on Base: 5,000 AERO tokens locked until 2028/11/29

• Staked position on Hypercore: 500 HYPE tokens staked on Hyperliquid

• Borrow/lend positions on HyperEVM and Plasma:

  • On Hyperlend:

    • Supplying 5,156 HYPE, 3,080 kHYPE and 1,237 PT-kHYPE

    • Borrowing 2,000 HYPE

  • On Euler:

    • Supplying 1,000,000 USDai

    • Borrowing 900,000 USDT0

• Lending vault position: 5.3 WETH on the Re7 Morpho vault on Ethereum Mainnet

• LP position on HyperEVM: Supplied concentrated liquidity on ProjectX for the pair WHYPE/USDT0.

The current value of the portfolio is $512,425, as of 28th of October 2025.

The Value-at-Risk at 1% is -34.58%, and the Expected Shortfall at 1% is -39.19%.

The initial weight contributions are:

• Project X LP position: 0.3%

• Aave leveraged lending position: 32.7%

• Hyperlend lending position: 58.1%

• Staked HYPE position: 3.9%

• Morpho vault position: 3.4%

• Locked AERO position: 1.6%

Assuming a credit score of 777, this user would be approved for a credit line of $90,000 at 10% implied APR.