Digital assets

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 classes.

Duration

Short and revolving, with continuous collateral-health monitoring.

Default remedy

Margin-call and liquidation mechanics, not legal foreclosure: mark breach → margin call with a short cure window (top-up collateral or pay down) → liquidation of pledged assets. Hours-to-days, closer to DeFi collateral liquidation than UCC enforcement.

Risk stack

• 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 rather than obscured.

• 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.