Risk disclosure
Borrowing and lending on dVIN.capital involve real financial risk. Read this in full before participating.
For borrowers
Borrowing is secured by your wine. If a loan defaults at maturity, or an open-term loan's LTV breaches the liquidation threshold and isn't cured in time, the custodian sells the collateral to repay the lender. Any surplus returns to you — but you can lose the wine. Borrow conservatively relative to your loan-to-value ratio.
For capital providers
Loans are collateralized, but recovery on default is a physical process — the custodian must sell the wine, which takes days, not seconds. LTV discipline, transparent liquidation, and Liv-ex pricing are designed to protect principal, but yield is not guaranteed and capital is at risk, including the risk of partial or total loss.
Valuation risk
Collateral value is derived from the Liv-ex Mid methodology. Wine markets can move quickly; a decline in a wine's market price can trigger margin calls or liquidation faster than expected.
Stablecoin and settlement risk
Loans and repayments settle in EURC on Base. This exposes participants to smart contract risk, stablecoin issuer risk, and blockchain network risk in addition to the collateral risk described above.