Credit Quality Control

Eligibility criteria

• Water Finance works with institutional borrowers only. Eligible borrowers include non-bank loan originators that meet our market/sector fit.

• Water Finance Require the borrower to provide asset pledge and/or additional guarantee to enhance credit

Underwriting process

The Water Finance underwriting process consists of three major phases: screening, due diligence, and structuring. During the screening phase, our internal team will check eligibility criteria and financial metrics. It's during the due diligence phase that our team carefully review a borrower's financials and historical performance in detail. In the last phase, we structure the credit facility taking care of regulatory compliance, collateral management, and reporting standards.

Pre investment due diligence:

• Conducting research on the Borrower using both public resources and Borrower profiles.

• Reviewing the in-depth dataroom provided by Borrowers, accessible through the dapp.

• Joining the Borrower’s messaging channel and asking questions directly.

Post investment management:

• Joining the Borrower Communications channels to access regular reporting and investor relations.

• The repayment history of Borrowers are all on-chain and public to further creditors, which is incentives for borrowers to pay back.

• Based on on-chain credit history of borrowers, continuously upgrade the leverage model within the protocol.