> For the complete documentation index, see [llms.txt](https://stableunit.gitbook.io/documentation/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://stableunit.gitbook.io/documentation/risk-framework/example-asset-risk-scores-and-parameters.md).

# Example Asset Risk Scores and Parameters

Let’s walk through an **illustrative example** of how different assets might be scored and what parameters they would get. Table below shows an example collateral types. (These are simplified example values for illustration only; actual scores and parameters would be determined by rigorous analysis and governance approval.)

<table><thead><tr><th width="464.3671875">Parameter</th><th width="77.66015625">stETH</th><th width="111.8359375">Tokemak LP1</th><th width="100.09765625">Convex LP1</th><th width="83.66796875">Aura LP1</th><th width="67.9296875">ETH</th></tr></thead><tbody><tr><td>Simple Aggregate Risk Score (before adding weights, discounts, and premium)</td><td>1.92</td><td>3.23</td><td>2.77</td><td>3.69</td><td>1.85</td></tr><tr><td>Next stabilityFee, Annual %</td><td>4.06</td><td>6.28</td><td>7.1</td><td>5.25</td><td>3.99</td></tr><tr><td>Smart Contract Risk (1-low, 10-high)</td><td>2</td><td>3</td><td>2</td><td>3</td><td>1</td></tr><tr><td>Token Holding Concentration + Market Cap Risk (1- many holders, high market cap, 10-high concentration, low market cap)</td><td>3</td><td>4</td><td>5</td><td>7</td><td>1</td></tr><tr><td>2nd degree</td><td>8</td><td>6</td><td>3</td><td>10</td><td>10</td></tr><tr><td>Counter-party risk (token governance centralization risk, 1-low, 10-high centralization)</td><td>1</td><td>3</td><td>1</td><td>3</td><td>1</td></tr><tr><td>2nd Degree Counter-party Risk (i.e. USDC in their system)</td><td>2</td><td>4</td><td>2</td><td>6</td><td>1</td></tr><tr><td>DEX Rolling 30 days Volume Risk Score (1-high volume, 10-low volume relative to other collaterals)</td><td>1</td><td>2</td><td>7</td><td>1</td><td>1</td></tr><tr><td>2nd degree</td><td>2</td><td>6</td><td>3</td><td>2</td><td>2</td></tr><tr><td>Rolling 60 days Volume Risk Score (1-high volume, 10-low volume, relative to other collaterals)</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td></tr><tr><td>2nd degree</td><td>2</td><td>4</td><td>4</td><td>5</td><td>2</td></tr><tr><td>Collateral Volatility Risk Score (1-low volatility, 10-high volatility relative to other collaterals), Normalizing and comparing volatility derived from hourly and yearly volatility of the last day, 90 days, 1y, and 2y volume.</td><td>1</td><td>3</td><td>4</td><td>5</td><td>1</td></tr><tr><td>Liquidity - DEX Slippage Score (1-low slippage, 10- high slippage, relative to other collaterals)</td><td>1</td><td>2</td><td>1</td><td>2</td><td>1</td></tr><tr><td>2nd Degree</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Liquidity - CEX Slippage Risk Score (1-low slippage, 10-high slippage, relative to other collaterals)</td><td>1</td><td>2</td><td>1</td><td>2</td><td>1</td></tr><tr><td>2nd Degree</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Oracle risk</td><td>1</td><td>3</td><td>2</td><td>2</td><td>1</td></tr></tbody></table>

*Table 1: Illustrative risk scores and parameters for different collateral types.*&#x20;

For all listed collaterals, we visualize their positions in a **Collateral Risk Matrix** – essentially a heat map of risk scores – to get a holistic view of the portfolio. This helps us ensure we’re not overly exposed to any cluster of high-risk assets and that our risk is balanced across categories.