Nami Credit is designed to isolate credit line accounting, protect lender liquidity, and limit reliance on external components such as price oracles and liquidators.

How collateral is held and accounted for.

Collateral deposited into Nami Credit is converted into Infinite veNAMI and aggregated into a primary Infinite veNAMI position managed by the protocol.

Each ncPOS holds shares representing its proportional share of the primary position, while separately accounting for the collateral, debt, rewards, fees, and rebase attributed to that credit line.

This keeps credit line accounting independent even though the underlying collateral is managed in aggregate.

When collateral is added, the corresponding shares are assigned to the credit line. When a credit line is closed, its shares are removed and the corresponding amount of Infinite veNAMI attributed to the position is separated from the primary position and returned.

Shares and reward entitlements are recorded through epoch-based checkpoints.

Before operations that modify collateral, the protocol settles the accounting for rewards and rebase already attributed to the position.

Why credit lines do not depend on NAMI market price.

Borrowing capacity is based on the voting reward fees and incentives the collateral is expected to generate rather than the market price of NAMI.

Nami Credit does not require a price oracle to determine or monitor collateral value. Changes in the market price of NAMI do not trigger price-based or permissionless liquidations.

Any LTV shown in the interface is for informational purposes only and is not used as a protocol parameter.

How lender liquidity and ERC-4626 accounting are protected.

The lending market uses an ERC-4626 vault, applies a utilization limit to new credit issuance, and can limit deposits to keep capital within the intended operating range.

The vault uses dead shares and virtual assets to protect the asset-to-share ratio during the initial stage of the market and reduce exposure to inflation attacks commonly associated with ERC-4626 vaults.

The lender premium allocated to lenders accrues linearly throughout the epoch. Any portion that has not yet accrued is excluded from available liquidity.

The vault includes both available USDC and receivables corresponding to active credit lines. Withdrawals are limited by the USDC currently available in the vault, with proportional withdrawals used only during Recovery Mode.

How protocol conditions are monitored over time.

Debt Health, market utilization, reward conditions, and available liquidity are reviewed each epoch.

Parameters are managed by the team according to predefined public rules. Changes are applied during a defined end-of-epoch window and take effect in the following epoch.

The review covers the reward estimate, available credit duration, lender yield objective, dynamic premium, utilization limit, and deposit capacity. Values that depend on market conditions are variable and are not guaranteed.

Who can perform protocol operations.

Administrative and recurring protocol operations are controlled through separate roles.

Credit line servicing, voting, reward distribution, epoch finalization, parameter configuration, Recovery Mode, and the overall collateral limit are controlled through dedicated permissions.

Operators responsible for servicing can perform the functions required to collect rewards, apply allocations, and process repayments, but they do not have arbitrary authority over user collateral.

Reward token conversions can only be executed through authorized strategies, and an overall collateral limit prevents the primary position from exceeding its configured capacity.

Economic and operational parameters can only be modified through the permissioned administrative functions defined by the contracts.

Independent security reviews.