Purpose of Num Collateral Management Process

Overview

One of the key points in the Num Ecosystem is the issuance of Num Stablecoins (Num-S) backed by a variety of assets. In this matter, it is essential for Num to elaborate a highly detailed Collateral Management Process in order to mitigate volatility on the value of Num Stablecoins.

Objective of the Collateral Management Process

The main objectives of the Num Collateral Management Process are described in the following list:

  1. Preserve the net worth of the collateral

  2. Mitigate risks associated with investment, custody, and transfers of the collateral

  3. Seek for returns to generate sustainable revenue

Procedure & Vision

Num Finance follows the best industry standards in its Collateral Management Process. For this reason, we take into consideration several key points to preserve collateral. The present document explains in detail Num Finance's approach to:

  • Collateral Management

  • Num Finance Reserve Investment Prospect

  • Risk Measuring & Risk Mitigation

  • Reporting

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