Curate UnblockEquity Vaults
24 product combinations across 3 independent risk axes. 23 deliver >2% net yield. Institutional-grade actuarial modeling on real US residential collateral.
Three Independent Risk Axes
Every loan is composed of three independently selectable dimensions. Curators mix and match to construct vault strategies matching any risk appetite.
Axis 1: Credit Tier
Borrower verification level. Determines base probability of default.
Axis 2: Escrow Protection
Prepaid mortgage months. Reduces PD by guaranteeing senior lien performance.
Axis 3: Recovery Mode
Default resolution strategy. Determines Loss Given Default.
Complete Risk Matrix
All 24 product combinations ranked by net yield. Each row is an independently underwritable loan product with its own PD, LGD, and expected loss. Net yield assumes ~8% gross vault APR minus 0.5% protocol costs.
| # | Combination | LTV | PD | LGD | EL | Net Yield | Viable |
|---|---|---|---|---|---|---|---|
| 1 | StandardBR3FC | 55% | 11.05% | 0.0% | 0.000% | 7.50% | |
| 2 | VerifiedBR12FC | 75% | 0.75% | 25.6% | 0.192% | 7.31% | |
| 3 | PrimeBR12FC | 70% | 1.20% | 20.3% | 0.243% | 7.26% | |
| 4 | VerifiedBR12 | 62.5% | 0.75% | 41.4% | 0.310% | 7.19% | |
| 5 | VerifiedBR6FC | 75% | 1.25% | 25.6% | 0.320% | 7.18% | |
| 6 | PrimeBR6FC | 70% | 2.00% | 20.3% | 0.405% | 7.09% | |
| 7 | VerifiedBR3FC | 75% | 1.63% | 25.6% | 0.417% | 7.08% | |
| 8 | PrimeBR12 | 62.5% | 1.20% | 41.4% | 0.497% | 7.00% | |
| 9 | VerifiedBR6 | 62.5% | 1.25% | 41.4% | 0.517% | 6.98% | |
| 10 | PrimeBR3FC | 70% | 2.60% | 20.3% | 0.527% | 6.97% | |
| 11 | VerifiedFC | 75% | 2.50% | 25.6% | 0.639% | 6.86% | |
| 12 | VerifiedBR3 | 62.5% | 1.63% | 41.4% | 0.675% | 6.83% |
EL = PD x LGD. Net Yield = ~8% gross APR - 0.5% protocol costs - EL. Combo #24 (Standard, lien-only, no escrow) nets only 0.46% -- the only non-viable product.
Self-Sustaining Positions Reduce Default Risk
Borrowers choose their own borrow amount — they are not forced to max LTV. Full equity is tokenized as collateral from day one, but the borrow amount is the variable the borrower controls. The breakeven home price index (HPI) needed to cover interest: breakevenHPI = (borrowAmount × interestRate) / propertyValue. For most realistic borrow levels, this is under 1–2%, well below FL’s historical 3–5% annual appreciation. Result: positions improve over time automatically, and default becomes unlikely in normal markets.
Curator implication: At typical FL appreciation rates (3–5%), borrower equity grows faster than the ~4% Morpho interest rate, making most positions self-improving over time. This creates a natural deleveraging effect that reduces default probability beyond what static PD models capture — actual vault performance should outperform the actuarial projections above.
Zero Expected Loss
Standard+BR3+FC achieves 0.000% EL: the conservative 45% LTV creates zero loss-given-default even with 11% PD. The first product in DeFi lending with actuarially zero expected loss on real-world collateral.
Broad Product Surface
23 of 24 combos deliver >2% net yield. Net yields range from 4.05% to 7.50%, giving curators a wide spectrum to match depositor risk preferences. No two combos have identical risk profiles.
FC Right Is the Key
Foreclosure right cuts LGD from 41.4% to 20.3% (or 0.0% at conservative LTVs). The top 3 combos by net yield all include the FC right. This is the single most impactful lever for vault optimization.
LGD by Recovery Mode
Foreclosure right cuts LGD in half. The mechanism: faster timeline, lower REO discount, and active enforcement vs passive collection.
Lien-Only Recovery
Passive collectionForeclosure Recovery
Active enforcementThe math: At conservative LTVs (45%), the FC right drives LGD to 0.0% -- meaning even if the borrower defaults, the property sale proceeds fully cover the junior lien position. At 62.5% LTV, FC cuts LGD from 41.4% to 20.3%, a 51% reduction in loss severity.
2008 Financial Crisis Replay
What happens to each tier if we replay the worst housing crisis in modern history? PD multiplied by crisis factors, LGD assumed at 100% (total loss on every default). This is the absolute worst-case scenario.
| Tier | Stressed PD | LGD (assumed) | Expected Loss | Vault Survives? |
|---|---|---|---|---|
| Verified | 6.2% | 100% | 6.25% | Yes |
| Prime | 10.0% | 100% | 10.00% | Yes |
| Standard | 42.5% | 100% | 42.50% | Severe Loss |
| BR3 | 27.6% | 100% | 27.62% | Impaired |
| BR6 | 21.3% | 100% | 21.25% | Impaired |
| BR12 | 12.8% | 100% | 12.75% | Yes |
Key Takeaways
- Verified and BR12 tiers survive a 2008 replay with single-digit losses
- Even Prime at 10% EL is recoverable over a multi-year horizon
- Escrow tiers show clear gradient: BR12 (12.75%) outperforms BR6 (21.25%) which outperforms BR3 (27.62%)
Conservative Assumptions
- 100% LGD is extreme -- real LGD at 62.5% LTV is 20-41% even in a crisis
- PD multipliers based on actual 2007-2009 MBA delinquency data, not projections
- Standard tier (42.5% EL) confirms why that combo requires FC right or escrow to be viable
Vault Deployment Playbook
Which combos to prioritize for different depositor profiles. Each vault is individually risk-profiled -- no cross-contamination between vaults.
Conservative Vault
Recommended FirstTarget depositor: institutional allocators, DAOs, treasury managers seeking stable yield with minimal loss exposure. Focus on combos with EL < 0.5%.
Balanced Vault
Target depositor: DeFi-native yield seekers comfortable with moderate risk. Broader product mix including all credit-verified and mid-range escrow combos.
Growth Vault
Target depositor: risk-tolerant allocators seeking maximum volume. Includes Standard-tier combos with escrow or FC protection. Excludes naked Standard (combo #24).
Portfolio diversification note: Tokenized Lien Collateral (TLC) + Breathing Room escrow = unique collateral type not correlated with crypto markets. Property values move independently of ETH, BTC, or DeFi TVL. This is real asset yield from real borrowing demand.
Recovery Waterfall
What happens when a borrower defaults. Multiple protection layers activate sequentially.
Escrow Auto-Pay (BR tiers only)
Months 1-12Escrowed funds auto-release to mortgage servicer via Chainlink Automation. Senior lien stays current for 3-12 months regardless of borrower behavior. Buys time for voluntary cure.
Cure Period & Negotiation
Months 1-6MBA data shows 70% of BR12 borrowers resume payments within the escrow window. For non-BR borrowers, direct outreach and modification offers. Most defaults resolve here.
Lien Enforcement Notice
Month 6+Formal demand for repayment under the SEA. Junior lien attaches to property -- borrower cannot sell or refinance without satisfying the lien. This is passive but persistent.
Foreclosure Proceedings (FC combos only)
Month 6-18File judicial foreclosure in FL circuit court. FL timeline: ~360 days to resolution. Court-ordered sale at market rates minus 15% REO discount. This is the active recovery mechanism that cuts LGD from 41.4% to 20.3%.
Property Sale & Distribution
Month 12-24Sale proceeds distributed: senior mortgage first, then UE junior lien, then excess to homeowner. At 62.5% LTV, the equity buffer absorbs significant price declines before UE takes any loss.
Integration Details
Morpho Blue on Base L2. USDC denomination. All contracts deployed and verified.
Token Flow: Property to Yield
Deployed Contracts (Base Mainnet)
V2 Curator Vaults
From Property to DeFi Collateral
Legal Instrument
A Shared Equity Agreement (SEA) creates a voluntary junior lien recorded at the county level. Same legal framework used by Point ($2B+ originations), Hometap, and Unison. The lien survives property sale -- it attaches to the property, not the person.
The homeowner retains full title and all Florida homestead protections: the $50,000 property tax exemption, creditor protection, and Save Our Homes 3% annual assessment cap.
Phase 1 Limitations
Tokens are collateral only, non-transferable, and carry no appreciation-sharing rights. Depositors earn yield solely from borrowing interest rates, not from property value changes.
Under the Howey test, this structure does not constitute a security. Phase 2 (token transfers, secondary marketplace) will be pursued only with appropriate legal framework and regulatory guidance.
Valuation & Oracle
ATTOM AVM
- Covers 155M+ US properties with automated valuation models trained on county assessor records, MLS sales, and deed transfers.
- Monthly refresh cadence. Valuations include confidence scores. Properties below confidence threshold are rejected.
On-Chain Pipeline
7500 SW 176th St, Palmetto Bay FL 33157
Current ATTOM AVM: $1,145,719
Legal Structure
Corporate Entity
Regulatory Position
Phase 1 tokens are collateral only, non-transferable, and carry no appreciation-sharing rights. Under Howey, this does not constitute a security.
UE files a voluntary junior lien, not a mortgage. All FL homestead protections preserved. Closings through licensed FL title companies.
Two provisional patents filed with the USPTO
Covering tokenized lien collateral methodology and tiered escrow rehabilitation technology.
Let's Talk
We respond to curator inquiries within the same business day. Data room access available upon request. Full actuarial model, legal documents, and contract source code available for review.