MortgageFi

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

MortgageFi’s live Pool model lets lenders deposit stablecoins into independent vaults that fund long-dated BTC or ETH purchases. Borrowers avoid price-based liquidation, but a missed-payment timer can default the position; that is not a risk-free exit promise. The 2026-08-16 DefiLlama adapter still measured about $0.80M in two Base contracts and one residual Arbitrum contract, while the current application labels Ethereum and Base markets live and the old Base and Arbitrum vaults deprecated. A lending book this small cannot take advised client money: one practice advising 100 households moves $1M to $8M into a venue on the same research, and below $100M TVL that book becomes the exit crush. The file is rejected on size, with the adapter-versus-live-market lifecycle reconciliation and lender redemption liquidity retained as independent blockers.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days
• Every live and deprecated chain balance is reconciled to named contracts and an executable lender exit at the proposed allocation size

The research file

Mechanism applicability

The currently live Pool model is peer-to-pool lending: stablecoin lenders deposit into an independent shared vault and borrowers use a down payment plus pool capital to acquire supported BTC or ETH exposure held by the mortgage contract. Lender yield comes from interest and fees. The protocol says there are no price-based liquidations, but missed scheduled payments trigger default and the borrower loses the position; duration can extend to 30 years.

Current observation and lifecycle perimeter

The DefiLlama API read on 2026-08-16 reported approximately $0.76M on Base and $0.05M on Arbitrum. Its adapter still counts two Base pool contracts and one Arbitrum pool contract. In contrast, the current MortgageFi market application identifies USDC-cbBTC on Base and USDC-WETH on Ethereum as live, and labels the old Base WETH and Arbitrum WBTC vaults deprecated and closed to deposits. Ethereum, Base and residual Arbitrum are therefore recorded, but every counted balance must be reconciled before use.

Control, loss and exit applicability

MortgageFi publishes deployed pool contracts and audit reports for the Pool model. Lenders nevertheless bear duration, utilization, smart-contract, default-resolution and stablecoin risks. Its Redeemer and secondary-market documentation describe routes for converting an Earn position, but neither a UI route nor LP-token trading proves immediate net-asset-value liquidity when a pool is highly utilized or deprecated. The announced peer-to-peer Matching Engine is targeted for Q3 2026 and is not treated as live.

Why the class rule decides

At approximately $0.80M measured by DefiLlama, a $1M advised sleeve would exceed the entire tracked pool system. Aave or Compound suppliers take open-ended overcollateralized utilization exposure; MortgageFi lenders instead fund undercollateralized, payment-timed, potentially decades-long positions, so their liquidity and default paths are not interchangeable. The shared version-1 below-materiality dossier decides now. Reopen only after TVL exceeds $100M for 30 days, all live and deprecated balances are reconciled, and proposed-size lender redemption and default resolution are evidenced.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• MortgageFi — current Pool model and lifecycle · primary · accessed 2026-08-16
  Supports: shared vault, lender yield, 30-year term, missed-payment default, live Pool model, Matching Engine roadmap
• MortgageFi — lender and Earn mechanics · primary · accessed 2026-08-16
  Supports: lender deposit, Earn position, interest, fees, pool exposure
• MortgageFi — default mechanism · primary · accessed 2026-08-16
  Supports: missed payment, timer, default, borrower position, resolution risk
• MortgageFi — deployed contracts · primary · accessed 2026-08-16
  Supports: pool contracts, Base, Arbitrum, deployment perimeter
• MortgageFi — Pool-model audits · primary · accessed 2026-08-16
  Supports: audit reports, Pool model, review scope, security evidence
• MortgageFi — current market status · primary · accessed 2026-08-16
  Supports: Ethereum live vault, Base live vault, deprecated Base vault, deprecated Arbitrum vault, deposit status
• DefiLlama — MortgageFi survey record · secondary · accessed 2026-08-16
  Supports: current TVL, Base, Arbitrum, Lending category, survey observation
• DefiLlama adapter — MortgageFi counted pools · secondary · accessed 2026-08-16
  Supports: two Base contracts, one Arbitrum contract, pool balance methodology, coverage perimeter

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.