Digital assets
Secured lending to Forest Road's digital-assets trading subsidiary, financing the desk's trading book. It is a related-party facility.
Marked-to-market · related party
How the claim is held
- The claim
- A pledged, marked-to-market portfolio of liquid crypto assets, not a receivable. The collateral is price-volatile and liquid, the opposite profile of the receivable-backed sectors.
- Duration
- Short and revolving, with continuous collateral-health monitoring.
- Default remedy
- Margin-call and liquidation mechanics, not legal foreclosure. A mark breach triggers a margin call with a short cure window to top up collateral or pay down; if uncured, pledged assets are liquidated. The path runs in hours to days, closer to a DeFi liquidation than to foreclosure on a receivable.
What can go wrong
Price volatility & gap risk
Crypto collateral can reprice sharply and gap through margin levels. LTV is set conservatively and margin thresholds trigger well before impairment.
Related-party exposure
The borrower is Forest Road's own subsidiary. Terms must be arm's-length, the position is capped by concentration limits, and the conflict of interest is disclosed on the risk and legal pages.
Valuation freshness
Health checks depend on frequent attested marks. Stale marks block new draws and tighten the margin machinery automatically.
Custody & operational
Pledged assets sit with qualified custody; key management and operational controls are part of the risk surface.
Live sector parameters (LTV cap, maturity and concentration headroom) are enforced on-chain by the CollateralRegistry and are not restated here, so this page cannot drift from them. Interest rates and payment terms are signed per facility. The current testnet deployment runs its concentration limits fully open, so today's sector mix says nothing about production settings. Read current state →