Skip to main content

Compliance Posture

PRISM is designed as non-custodial, non-advisory, deterministic infrastructure.

Non-Custodial​

Users retain control over their wallet and decide when to deposit, withdraw, or trade. The protocol defines accounting rules, but it does not make investment decisions for the user.

Non-Advisory​

PRISM exposes risk layers and pricing information. It does not recommend that a user choose one tranche over another.

Interfaces may show strategy presets such as Conservative, Balanced, or Aggressive, but these are product organization tools, not financial advice.

Deterministic​

Protocol behavior is based on predefined rules:

  • Waterfall yield allocation.
  • Reverse-priority loss absorption.
  • NAV-based minting and redemption.
  • Constant-product AMM pricing.

The rules should be visible before users interact with the system.

User Responsibility​

Users should understand:

  • Prime tranches are protected, not risk-free.
  • Alpha tranches carry first-loss risk.
  • Market price can diverge from NAV.
  • AMM trades are subject to slippage.
  • Credit events can reduce redemption value.

Future Compliance Extensions​

Future versions may add:

  • Institutional originator controls.
  • Region-specific access rules.
  • Permissioned vaults.
  • Identity or reputation modules.
  • Reporting integrations.

These extensions should preserve the core non-custodial accounting model wherever possible.