This page exists because the last generation of on-chain credit protocols was not honest early enough, and the people we want as investors have long memories.

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What PRISM has not done

No loans originated. No capital deployed. No pool funded. No losses, because there have been no loans. The tranche mechanics run on a test network. There is no track record here, and nothing on this site should be read as one.

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Numbers that are assumptions

The 4% expected loss rate has never been measured. It is a placeholder. It will be replaced by data from the shadow pool, or by the price a professional credit investor demands for holding the junior tranche — whichever comes first. Tranche rates are targets, not guarantees. They are our estimates of what each layer should pay, and they will move when real buyers price them. Fee levels are not final. Structuring and servicing fees are stated as ranges because they have not yet been tested against a real originator.

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Risks we cannot remove

Tranching does not reduce losses. It changes who absorbs them and in what order. A pool that loses 30% still loses 30%. No on-chain junior tranche has yet absorbed a real credit loss as designed. Across every protocol we reviewed, first-loss capital has either been bypassed, covered off-chain, or never tested. Ours is untested too. Legal enforceability varies by jurisdiction. Recovery depends on courts in the originator’s home country, and it is slow and incomplete. The originator is the concentrated risk. Early pools will have one originator. If that company fails or misreports, protections help but do not make investors whole. Smart contracts can have bugs. An audit reduces this risk. It does not remove it.

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Regulatory position

Tranche notes are likely securities in most jurisdictions. Being on a blockchain does not change that. Pool one is open only to KYC-checked professional investors. US persons and sanctioned jurisdictions are blocked at the token level, not only on the website. Nothing on this site is an offer to sell, investment advice, or legal advice.