Structured Credit for On-Chain Risk
Siprifi transforms prediction market exposures into composable, risk-aware credit instruments — enabling capital-efficient protection markets without leverage or liquidations.
The Problem
The Problem with On-Chain Risk Today
Current on-chain risk markets lack the structural sophistication of traditional finance, leaving capital inefficient and risk poorly distributed.
Capital locked until resolution
Prediction market positions remain illiquid until event outcomes are determined.
No maturity differentiation
All exposures treated equally regardless of time horizon or settlement date.
Correlated risk treated independently
Related events are priced in isolation, ignoring systemic dependencies.
Inefficient protection markets
No structured way to hedge or transfer risk without full capital lockup.
The Solution
From Prediction Markets to Structured Credit
Siprifi applies traditional structured finance principles to on-chain risk, creating a more efficient and resilient system.
YES / NO shares as credit primitives
Binary outcome positions are reframed as credit instruments with defined risk profiles and maturity characteristics.
Time-based risk stratification
Protection periods are structured into tranches, allowing risk to be priced and traded based on duration.
Systematic risk decorrelation
Correlated events are identified and structured to prevent cascading failures across the protocol.
NAV-based accounting
All positions are valued based on Net Asset Value, ensuring transparent and accurate pricing at all times.
How It Works
Four Steps to Structured Credit
A systematic process that transforms raw prediction market exposure into structured, tradeable credit instruments.
Deposit
NO shares / ETH into VaultUsers deposit prediction market NO shares or ETH into Siprifi vaults, providing the underlying collateral for the credit system.
Calculate
Risk engine determines credit capacityThe protocol's risk engine analyzes correlations, maturities, and market conditions to calculate effective credit capacity.
Issue
Short-dated protection (junior) is issuedProtection instruments are issued against the collateral, with junior tranches absorbing first-loss risk.
Represent
sipUSD represents residual equitysipUSD tokens are minted to represent the residual system equity — the remaining value after all liabilities.
sipUSD is Not a Stablecoin
Unlike traditional stablecoins that maintain a 1:1 peg to fiat currency, sipUSD represents the residual equity of the Siprifi system — a fundamentally different economic primitive.
Non-redeemable
sipUSD cannot be redeemed directly for underlying collateral. It represents a claim on system equity.
Closed-loop
Operates within the Siprifi ecosystem, maintaining internal consistency and preventing external arbitrage.
NAV-based valuation
Value is determined by Net Asset Value calculation, not external price oracles or market sentiment.
Residual claim
Represents the equity layer — what remains after all senior and junior obligations are satisfied.
NAV Calculation
Supply vs NAV
No peg. No oracle dependency. Value derived from protocol fundamentals.
Risk Design
Designed for Adversarial Conditions
Siprifi's architecture is built to withstand extreme market conditions without triggering the feedback loops that have collapsed other protocols.
No forced liquidations
The protocol never force-sells collateral. Risk is absorbed through the equity layer, preventing cascading liquidations.
No margin calls
Users are never required to add additional collateral. Position sizing is determined upfront.
No reflexive spirals
The closed-loop design prevents death spirals where falling prices trigger more selling.
Losses absorbed via equity
sipUSD holders absorb residual losses, protecting senior tranches and maintaining system stability.
Stress Scenario Simulation
Comparison
How Siprifi Compares
A new category of on-chain risk infrastructure, distinct from existing paradigms.
| Feature | Siprifi | Prediction Markets | DeFi Lending |
|---|---|---|---|
| Structured Credit | |||
| Maturity Control | |||
| NAV Accounting | |||
| Risk Tranching | |||
| No Liquidations | N/A | ||
| Capital Efficiency |
Architecture
Built on Proven Financial Primitives
Siprifi adapts battle-tested structures from traditional finance to the unique requirements of on-chain risk markets.
Credit Default Swaps
Protection against credit events
Collateralized Loan Obligations
Tranched credit exposure
Central Clearing Waterfall
Default management structure
Insurance Risk Pools
Mutualized risk sharing
Siprifi is not leverage.
Siprifi is structured risk.
Join the next evolution of on-chain risk infrastructure. Built for institutions. Designed for resilience.