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The risk that matters most

The end borrowers are not the main danger. The originator is. The originator finds the loans, collects the money, and reports the numbers. You are not in the room. Everything you know about the pool, you know because they told you.
No tranche structure prevents any of that. Tranches decide who loses first. They cannot stop money leaving through the wrong door.

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The shape of the problem

The originator problem

Why credit loss and originator failure look nothing alike in the data, and why only one of them is handled by the waterfall.

The Goldfinch case study

A dashboard showing 20% losses against a real figure near 70%, and $18M of documented losses.

The four controls

What is actually done about it, in order of importance.

Limits

What arrives later, and the boundary no smart contract closes.

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Our credibility position

PRISM states risks plainly because its audience has watched Goldfinch and Maple V1 fail. Naming what can go wrong is the only credibility available to a protocol with no track record — and PRISM has no track record at all. See Where things stand.