The signals are independent. A borrower can hold substantial assets in its own accounts and still miss a payment because the assets have not been returned to the vault. A payment shortfall is a default in its own right, whatever the Solvency Ratio shows.
Solvency Monitoring
The Master Loan Agreement requires every borrower, whichever onboarding path applies, to provide and maintain a read-only API key to its monitoring account, an exchange account of the borrower’s choosing. The key allows balances to be read. It is held by the platform and is not exposed in raw form to the Issuer, to Axcess, or to lenders. The account is read approximately every hour. Each reading produces the Solvency Ratio: the value of the assets in the monitoring account, divided by the principal and accrued interest the borrower owes under the facility. The value is the one the exchange reports for the account at the time of the reading. It includes settled balances and, where the exchange reports them as part of the balance, unrealised gains and losses on open positions. Pending trades are excluded until they settle. A reading is valid when it is obtained through an active, authenticated connection to the borrower’s key. If a fresh reading cannot be obtained, for example because the key has been revoked or has expired, the most recent valid reading continues to apply until a new one is obtained. A failure to maintain the key is an Event of Default.Scope of a Reading
The monitoring account need not be the account that receives drawn funds. Where the two are the same account, drawn funds sit alongside the borrower’s own capital, and a reading does not distinguish between them. Where they differ, a reading shows the borrower’s solvency only to a multiple of the value held in the monitoring account; the borrower may move drawn funds to accounts that are not read. Borrowers also use different venues and account structures, so the accounts, products, and data that a reading covers are specific to each facility. The facility’s terms and the app identify the scope that applies.Solvency Ratio States
Under the agreement, time spent in the Warning state is cumulative. The grace period does not reset when the borrower cures. It is restored gradually, by one minute for each minute the borrower remains Healthy.
The Master Loan Agreement uses the word Delinquent for this Solvency Ratio state. Elsewhere in this documentation, delinquency means the on-chain payment shortfall described in Delinquency and Termination.
These are contractual states. The responses are carried out under the agreements by the Issuer and the authorised platform roles. The vault contract does not pause, liquidate, or terminate a facility automatically when a state changes, and it charges penalty interest only for a payment shortfall.
What Lenders See
Lenders see the borrower’s state and the time of the most recent reading. The borrower’s raw account value is not disclosed. Under the Service Agreement, the platform operator may use the borrower’s account data only to compute and display the monitoring output, and may disclose it only in aggregated form, such as a published state. In the app, a facility shows:- A coverage band derived from the latest reading: Healthy, At Risk, Delinquent, or Default.
- The time of that reading, with an indicator when the data is stale.
- Proof information, where an attestation has been published for the facility.
Proofs and Attestations
A monitoring reading is taken and reported by the platform. To reduce reliance on the platform’s own reporting, Axcess supports cryptographic attestations of borrower data. An attestation can be published on-chain, where anyone can verify it without seeing the underlying figures. The contractual reading is taken directly through the borrower’s read-only key, and the Master Loan Agreement does not rely on any attestation or proof network. Attestations are a supplementary check on the platform’s reporting, not a contractual trigger.How an Attestation Is Produced
1
Data Is Retrieved With Proof of Origin
Borrower account data is retrieved from its source, such as an exchange API, through Reclaim Protocol. Reclaim’s attestors witness the encrypted session with the source and sign the response. The signature establishes that the data came from the stated source and was not altered by the borrower or by the platform. Sensitive request details, such as API credentials, are redacted from what the attestor sees.
2
A Statement Is Proven Without Disclosing the Data
A zero-knowledge proof is computed over the attested data. It establishes a specific statement, for example that the assets in scope fall within a stated band relative to the facility’s debt, without revealing the balances themselves.
3
The Proof Is Verified and Recorded On-Chain
An on-chain registry verifies the proof and checks that the attestation was signed by an approved attestor before it records the result. An authorised platform relayer submits the proof and associates it with the borrower and the facility.