# Asset risk > Scoring tokens per chain - stablecoin peg behaviour, curated categories, LST and wrapper inheritance, token governance and liquidity. Source: https://docs.1delta.io/risk/assets/ --- Scores the **token**, per chain, keyed by lowercase address. Per-chain keying is deliberate: bridged assets are not the assets they are named after. WETH on Ethereum and a bridged WETH on a side chain are different risks and must not share a score. --- ## Resolution order For each `(chainId, address)`: 1. **Stablecoin** — if it matches a scored stablecoin, use that score. 2. **Whitelist** — if it is in the curated per-chain whitelist, use the curated score and category. 3. **Default** — a conservative fallback of **4**. Then two passes refine the result: **underlying inheritance** and, for vault share tokens, the vault's own composite rating. A default of 4 says *we have no information*, not *this is dangerous*. That distinction matters downstream: unknown assets are never forwarded as a risk signal into vault or market ratings. --- ## Stablecoins A quality score from three terms — price against peg (40%), market cap (30%), peg mechanism (30%) — mapped onto the 1-5 scale. | Mechanism | Quality term | | --- | --- | | Fiat-backed | 1.0 | | Overcollateralised | 0.85 | | Crypto-backed | 0.7 | | Algorithmic | 0.3 | | Other or unknown | 0.5 | Market cap runs from 1.0 at $1B or more down to 0.1 below $100k. Only *below*-peg deviation is penalised; a stablecoin trading above peg is not a holder risk. A null price, or a price below $0.50, sets quality to zero outright. ### Peg behaviour is a floor, not a term Peg behaviour sets a **floor** the weighted score cannot undercut, rather than being one weighted term among three. Otherwise size offsets a break: a token 5% below peg with $306M circulating scored the same as a healthy mid-cap purely on market cap. The floor uses a 90-day price history, so a break that has partly healed still counts: | Condition | Floor | | --- | --- | | Currently 10% or more below peg, or a sustained break of 20% or more in the window | 5 | | Currently 5% or more below peg, or a sustained break of 10% or more | 4 | | Currently 2% or more below peg, or 7 or more days off peg in the window | 3 | Every historical tier requires the break to have been **sustained** — at least 7 days off peg. A single-day print is as likely to be a bad quote as a real break, and without this rule one glitch pins an asset at 5 for the whole window. The floor is applied only when the verdict is trustworthy: the peg target must be known (a USD peg, or a fiat both the supply source and the FX source quote), and the price must not be a shared fallback quote served for many assets at once. Non-USD pegs are converted at live fiat rates — a token tracking SGD at $0.78 is not 22% depegged. ### Yield-bearing tokens carry no price term Their price is a redemption ratio against an underlying, not a peg. Scoring it against $1 reads yield accrual as instability. Their peg risk arrives through inheritance instead. ### One asset, every deployment A stablecoin is one asset with many addresses, and its score is a property of the asset. Every published deployment is keyed into the output. Identity is resolved by **issued address** where the source publishes one, with symbol matching as a last resort — tickers are not identities, and symbol-only matching had one project's yUSD wearing another's score. --- ## Curated categories The whitelist carries a curated score plus a category: `NATIVE`, `BLUE_CHIP`, `LST`, `LRT`, `ESTABLISHED_DEFI`, `OTHER`, `COMPROMISED`, `DISCONTINUED` `COMPROMISED` and `DISCONTINUED` are the only categories that make a *market* risky downstream. Being an LST, an LRT or an RWA is not a defect — it is ordinary lending risk, priced by LLTV. --- ## Wrapper and LST inheritance **A wrapper is never safer than what it holds.** Every token that declares an underlying is lifted to `max(own score, underlying score)`. | Wrapper type | Underlying declared as | Applied | | --- | --- | --- | | Pendle PT/YT/SY | an address | always | | Savings / staked wrapper | a symbol | always | | LST | a base asset (ETH, BTC) | only for `COMPROMISED` / `DISCONTINUED` | | Vault share | an address, from the vault's own topology | always | The pass runs to a fixed point because wrappers stack (`sUSD3 -> USD3 -> USDC`). Scores only ever rise, so it terminates. LST inheritance is narrow on purpose: an LST's risk is its own staking and withdrawal design, not the risk of ETH. Only a compromised or discontinued base asset propagates. Because inheritance only raises, it cannot help a vault share whose underlying is *safer* than the default of 4. So a final pass replaces the blanket default on vault shares with the vault's own composite rating from [Vault risk](https://docs.1delta.io/risk/vaults/), floored by the underlying. It applies only where the entry is still `default` — curated and stablecoin scores are never overridden. Only the vault *topology* is consumed here, never the vault's score, so this is not a cycle. Symbol-declared underlyings are resolved conservatively: a same-chain symbol match is used only when exactly one candidate is a recognised asset, otherwise the asset group must map unambiguously corpus-wide. Ambiguous tickers are left alone rather than guessed. --- ## Token governance Each asset also carries an upgradeability and mint-authority rating — who can swap the token's implementation or inflate its supply. The classifier, the score table and the blacklist/pause/seize capability floor are documented in [Governance](https://docs.1delta.io/risk/governance/). Assets that could not be probed are not merged at all, so a transient RPC failure never fabricates a rating. --- ## Liquidity Every asset is enriched with an approximate USD depth figure, sourced per asset type: Pendle markets for PT/YT/SY tokens (they do not trade on ordinary DEXs, so aggregator depth is meaningless for them), the wrapped-native token's depth for the zero address, and DEX-aggregator depth for everything else. Two flags matter more than the number: - `deepLiquidity` — effectively bottomless depth. - `noDexLiquidity` — used as collateral on a supported chain yet has no DEX liquidity at all. Typically a vault or redeem-only token, and a useful signal for collateral that cannot be unwound in a liquidation. Liquidity is reported alongside the score rather than folded into it, since the right threshold depends on position size.