Collateralization under stress
Polymarket's assessment for RD-F-068 — scored not_applicable on the v1.7.0 rubric. The evidence below is the curator's reasoning for this score.
Evidence summary #
Polymarket is not under-collateralized under any stress scenario short of Circle USDC depeg. CTF architecture guarantees 1:1 USDC-to-outcome-token collateralization by construction via splitPosition. No stress scenario produces a collateralization ratio < 110% within the Polymarket smart contract layer. N/A per taxonomy §Cat 4 PD-024 (lending-only).
Sources #
- InternalPolymarket profile §4Taxonomy §Cat 4 PD-024: collateralization ratio is lending-only.retrieved 2026-04-29
- Polymarket docs — CTF overviewCTF splitPosition: deterministic 1:1 USDC-to-ERC1155 token minting. Fully collateralized by construction.retrieved 2026-04-29
Methodology #
Determine whether under curator-defined stress scenario (top-3 collateral assets drop 50%), protocol net collateralization falls below 110%.
See the full factor methodology and distribution across all protocols →
rubric_version v1.7.0 protocol polymarket factor RD-F-068 score not_applicable collected_at 2026-04-29 16:25:39