SIR

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

SIR splits each leveraged vault reserve between TEA liquidity shares and APE leveraged tokens; APE mint/burn fees accrue to TEA while leveraged trader performance changes the reserve split. This is not a conventional AMM LP. DefiLlama measured about $89,193 on 2026-08-16, so size rejects before reserve-loss, contract and exit underwriting.

Kill criteria: the events that revoke this verdict
• TVL sustained above $100M for 30 days

The research file

Materiality mechanism, applied

The threshold is a capacity constraint, not a quality judgment. A $2 million household with a 5-10% crypto sleeve and a 10-40% venue weight implies roughly $10,000 to $80,000 directed here; across 100 similar clients one practice can point $1 million to $8 million at a single venue on the same research. Below $100 million of protocol TVL, that book becomes the exit crush, and TVL itself is a generous capacity proxy rather than a promise of executable withdrawal: utilization, queues, unbonding, bridge depth and token liquidity can all leave less actually withdrawable than the headline figure implies. Small size does not itself indicate weak governance or team quality; the class rule stops short of that judgment because inadequate capacity for this distribution channel cannot be cured by otherwise-strong controls.

Mechanism applicability

For each collateral/debt/leverage vault, SIR defines a reserve split between TEA liquidity providers and APE leveraged tokens. APE has no liquidation or periodic funding, but can lose value; mint and burn fees flow to TEA. The reserve absorbs leveraged-token economics rather than AMM inventory rebalancing.

Control and assurance applicability

Vault parameters, supported pairs and deployed contracts determine the risk perimeter. SIR publishes deployments and an Egis Security audit, but an audit does not establish reserve solvency, economic safety or incident-free operation across every chain.

Exit applicability

TEA and APE exits depend on the vault reserve and protocol mint/burn path. A full review must model stressed trader PnL, fees, reserve composition and executable liquidity rather than infer capacity from aggregate TVL.

Why the materiality dossier decides

DefiLlama measured about $89,193 across Ethereum, MegaETH and Hyperliquid L1 on 2026-08-16, about 0.09% of the $100M floor. Reopen after TVL remains above $100M for 30 days, then test reserve accounting, roles, audit findings, incidents and proposed-size exits.

Sources

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

• SIR — protocol documentation · primary · accessed 2026-08-16
  Supports: APE leveraged tokens, no liquidation, live chains
• SIR — liquidity and leverage · primary · accessed 2026-08-16
  Supports: TEA and APE reserve split, vault definition, mint-burn fees
• SIR — live application · primary · accessed 2026-08-16
  Supports: current product lifecycle, vault interface, chain access
• Egis Security — SIR audit · primary · accessed 2026-08-16
  Supports: audit scope, security findings
• DefiLlama — SIR survey record · secondary · accessed 2026-08-16
  Supports: current TVL, chain perimeter, derivatives category

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.