Moma Risk Framework

1.Risk Management System

Examples like Compound and Aave types of decentralized excess collateral lending platforms will present new risks because of the introduction of new digital asset markets. Because of this, the platforms all need to have a complete set of risk control systems to handle and manage these risks. This type of risk management system is generally divided into three steps as follows:

1) Risk management strategies for setting a number of ratings

2) The target digital assets are evaluated through the evaluation of the degree of centralization risk, volatility risk, technical risk and other dimensions.

3) Implement risk management strategies based on ratings

Different from the "single" lending platform, Moma is a production platform that constantly generates new Lending Pools (i.e., new lending platforms). Each new lending platform has very different managers. leading to the implementation of different risk management strategies, which may even be completely risk-free in extreme cases. Therefore, how to help users analyze and judge the risk of each Lending Pool has become one of Moma’s core tasks.

2.Pool Management Risks

2.1 Risk of transferring cryptocurrency assets from smart contracts by Pool Managers

The Moma’s smart contract is designed to transfer the assets deposited in the Pool for the users who cannot pass the manager's private key, in which the risk of Pool Managers maliciously controlling user cryptocurrency assets is avoided as a result.

2.2Risks arising from changes in contract parameters by Pool Managers

• Asset introduction susceptible to price manipulation as collateral

• Mortgage rate adjustments of the assets with easy operating prices

• Pool managers replacing some of the Pool default contracts with contracts that are potentially detrimental

The Moma smart contract is designed to change the parameters only through a Timelock contract.The Timelock contract will execute the transaction after a specified locking time following the initiation of the modified parameter transaction. Moma can monitor any unexecuted Pool transaction using this method and fully prompt the user with the information so that the user has time to transfer his cryptocurrency assets before the risk arises.

3.Risk of Digital Assets

Risk of Digital Assets Supported by Pools include:Centralized Risks、Volatility Risks and Technical Risks.

4.Risk Management

1）Crypto Asset Risk Rating Database acts as a risk prompt list for identifying any potential risks related to the crypto asset in the Lending Pool. Moma users can take into account the rating score of a particular crypto asset from the database when they are deciding their participation strategies.

2）Whistleblower is the core mechanism of Moma’s risk management framework. By staking Moma tokens, users can become Whistleblowers and submit risk warning information. Once the information is confirmed as valid, Whistleblower will receive incentives.

3）Reserve Pool receives a portion of the interest revenue from Lending Pool and forms a fund pool. In situations where losses occur, the funds in the Reserve Pool will be mobilized for compensation.

4）Staking Management Pool is a staking pool formed by Pool Builders when they are upgrading their pools by staking Moma tokens. If any management problems occur during the pool operation process and result in losses on the user side, Moma tokens in the Staking Management Pool will be mobilized to compensate the affected users.