Historical bad-debt events
Maple Finance's assessment for RD-F-067 — scored red on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
One documented bad-debt event: Orthogonal Trading default December 2022, ~$36M uncollateralized bad debt from M11 Credit-managed pools. ~30% of active protocol loans at the time. Depositors in affected pools faced up to 80% losses. Recovery was partial (Kroll retained, BVI liquidator appointed, estimated $2.5M minimum recovery). Losses not fully compensated.
Detail #
CoinDesk (Dec 5 2022): Orthogonal Trading misrepresented financial position post-FTX exposure; defaulted on $31M USDC + $5M wETH ($3,900 wETH) across M11 Credit-managed pools. Maple V2 has since redesigned around mandatory collateral, but this was a Maple V1 event with real uncompensated lender losses. Yahoo Finance reference to $54M total sour debt from the 2022 period suggests the full loss may be larger. Rubric criterion: >=2 events or any uncompensated loss = red. One event with uncompensated loss = red.
Sources #
- URLFTX Contagion Spreads as Orthogonal Trading Gets Default Notice for $36M Debt on Maple FinanceCoinDesk Dec 5 2022 - Orthogonal Trading $36M defaultretrieved 2026-04-27
- Orthogonal Trading defaults on $36 million of loans on Maple FinanceThe Block - Orthogonal defaults on $36M on Mapleretrieved 2026-04-27
Methodology #
Count and sum (USD) the number of documented bad-debt events where the protocol socialized losses across depositors.
See the full factor methodology and distribution across all protocols →