> For the complete documentation index, see [llms.txt](https://steakhouse.financial/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://steakhouse.financial/docs/risk-management/collateral.md).

# Collateral Risk Framework

- [Collateral Standards](https://steakhouse.financial/docs/risk-management/collateral/collateral-standards.md): The Multi-Layer Risk Rating used by Steakhouse Financial to produce a Final Market Rating that determines vault eligibility and exposure limits.
- [Layers, Pillars and Criteria](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria.md): How layers, pillars, and individual scoring criteria are structured and graded on the AA-to-C scale in Steakhouse Financial's risk model.
- [Asset Rating (Layer 1)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/asset-rating-layer-1.md): Layer 1 of Steakhouse Financial's risk model, assessing issuer risk, credit risk, and operational risk for the underlying token.
- [Issuer (Pillar 1)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/asset-rating-layer-1/issuer-pillar-1.md): How the token issuer is assessed across Social, Decentralization, and Technical criteria, with the pillar rating set by the best of the three.
- [Credit Risk (Pillar 2)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/asset-rating-layer-1/credit-risk-pillar-2.md): Discretionary assessment of the probability of loss of value from the asset, expressed as a single rating from AA to C.
- [Operational Risk (Pillar 3)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/asset-rating-layer-1/operational-risk-pillar-3.md): How protocol longevity, audit coverage, and economic transparency are scored, with the pillar rating set by the worst of the three criteria.
- [Platform Rating (Layer 2)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/platform-rating-layer-2.md): Layer 2 of Steakhouse Financial's risk model, assessing the DeFi protocol that wraps, leverages, or transforms the underlying asset.
- [Market Rating (Layer 3)](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3.md): Layer 3 of Steakhouse Financial's risk model, evaluating oracle quality, liquidity depth, price fluctuation, and LLTV for each lending market.
- [Oracle](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/oracle.md): How Steakhouse Financial evaluates onchain pricing accuracy, including the MetaOracle that switches between price feeds on deviation.
- [Liquidity](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/liquidity.md): How token liquidity is scored based on the ability to exchange for another store of value through primary redemption or secondary markets.
- [Price Fluctuation](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/price-fluctuation.md): How the exchange rate between paired assets in a lending market is evaluated, covering volatility, correlation, and expected price evolution.
- [LLTV](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/lltv.md): How the Liquidation Loan-to-Value ratio factors into market risk scoring, including the notch-based bonus applied to the Price Fluctuation rating.
- [Credit Enhancement](https://steakhouse.financial/docs/risk-management/collateral/layers-pillars-and-criteria/market-rating-layer-3/credit-enhancement.md): How Price Fluctuation and LLTV ratings combine into a Credit Enhancement score that can upgrade the base Asset Rating.
- [Adjusted Asset Rating](https://steakhouse.financial/docs/risk-management/collateral/adjusted-asset-rating.md): How the Adjusted Asset Rating is calculated by taking the better of Credit Risk and Credit Enhancement in Steakhouse Financial's risk model.
- [Final Market Rating](https://steakhouse.financial/docs/risk-management/collateral/final-market-rating.md): How the Final Market Rating is derived as the worst-of across the Adjusted Asset Rating, Platform Rating, and Market Rating.


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