What can go wrong, before any of it does.
We surface the risk model in onboarding, in the dashboard, and on this page. Read it. Print it. Acknowledge it before depositing — we make you do that anyway.
Northvault deploys deposits via licensed loan originators that contractually guarantee buyback after 60–90 days of borrower delinquency. If an originator is unable to honor the buyback — for example due to insolvency — the recovery on impacted loans falls to the underlying borrower performance, which may be partial or zero. Diversification limits (≤25% of book per originator) reduce but do not eliminate this risk.
A macroeconomic downturn or sector-wide stress can push delinquency rates above historical norms. While we maintain a default reserve and concentration caps, extreme scenarios can impair depositor returns or, in tail cases, principal.
USDC and USDT are dependent on the reserves and policies of their respective issuers (Circle and Tether). Both have experienced material depeg events historically. Northvault monitors issuer reserves and splits exposure between both, but cannot insulate users from issuer-level events.
Withdrawals are processed from a liquidity reserve. In high-redemption-stress scenarios — for example a market-wide stablecoin run — withdrawals may be queued or temporarily paused while loans are wound down. The reserve target is 15% of AUM at minimum.
Customer stablecoins are held in a multi-signature treasury wallet on Solana. While multi-sig substantially reduces single-point-of-failure risk, no custody arrangement is risk-free. Smart contract bugs, key compromise events, and chain-level disruptions are exposures.
Northvault operates under a non-US regulatory frame. Regulatory rules around crypto and lending products are evolving globally. Changes in applicable rules — including in your jurisdiction — could affect product availability, terms, or your ability to access funds.
Northvault is not available to residents or citizens of the United States, or to residents of any sanctioned jurisdiction. Eligibility is determined at account opening and may be re-evaluated.