Credit Tiers
Five credit tiers that determine borrowing capacity, interest rate discounts, collateral requirements, and liquidation parameters for every participant on Dualis Finance.
Tier Overview
Every participant on Dualis is assigned to one of five credit tiers based on their composite credit score. Tiers are not merely labels — they directly govern the financial parameters of every lending, borrowing, and securities lending interaction on the protocol. Higher tiers unlock more favourable terms, reflecting the lower counterparty risk associated with well-established participants.
| Tier | Score Range | Max LTV | Rate Discount | Min Collateral Ratio | Liquidation Buffer |
|---|---|---|---|---|---|
| Diamond | 850 – 1000 | 0.85 | -25% | 1.15 | 0.05 |
| Gold | 700 – 849 | 0.78 | -15% | 1.25 | 0.08 |
| Silver | 500 – 699 | 0.70 | -8% | 1.35 | 0.10 |
| Bronze | 300 – 499 | 0.60 | 0% | 1.50 | 0.12 |
| Unrated | 0 – 299 | 0.50 | 0% | 1.75 | 0.15 |
Diamond Tier (850–1000)
Diamond is the highest tier, reserved for participants with exceptional credit histories and verified off-chain standing. Diamond tier participants benefit from:
- 25% interest rate discount — The most significant rate reduction, applied to all borrow positions across every pool.
- 0.85 max LTV — Borrow up to 85% of collateral value, maximising capital efficiency.
- 1.15 minimum collateral ratio — Maintain only 115% collateralisation before margin calls trigger.
- Under-collateralised lending access — Exclusive access to borrow facilities that require less than 100% collateral, subject to additional risk limits.
- Priority liquidation protection — A narrow 5% liquidation buffer means Diamond participants have the tightest spread between margin call and liquidation, reflecting the protocol's confidence in their creditworthiness.
Gold Tier (700–849)
Gold tier represents established participants with strong credit profiles. Benefits include:
- 15% interest rate discount on all borrowing.
- 0.78 max LTV — Borrow up to 78% of collateral value.
- 1.25 minimum collateral ratio with an 8% liquidation buffer.
- Under-collateralised lending access — Limited access to under-collateralised facilities with stricter caps than Diamond.
Silver Tier (500–699)
Silver tier participants have demonstrated consistent protocol engagement and responsible borrowing behaviour:
- 8% interest rate discount on all borrowing.
- 0.70 max LTV with a 1.35 minimum collateral ratio.
- 10% liquidation buffer provides reasonable protection against short-term market volatility.
- Full access to all lending pools and securities lending features.
Bronze Tier (300–499)
Bronze tier applies to participants who are building their on-chain credit history:
- No rate discount — Standard protocol rates apply.
- 0.60 max LTV with a 1.50 minimum collateral ratio.
- 12% liquidation buffer provides additional safety margin.
- Full access to standard lending pools. Securities lending participation may require additional collateral.
Unrated Tier (0–299)
New participants or those with insufficient history begin at the Unrated tier:
- No rate discount — Standard protocol rates apply.
- 0.50 max LTV — The most conservative borrowing limit, requiring at least 200% collateralisation.
- 1.75 minimum collateral ratio with a 15% liquidation buffer.
- Access to core lending pools only. Some advanced features require tier progression.
Tier Transitions
Tier upgrades take effect immediately upon score recalculation and apply to all new positions opened after the transition. Existing positions retain their original tier parameters for stability.
Tier downgrades include a 7-day grace period during which the participant retains their current tier benefits. This prevents short-term score fluctuations from triggering cascading margin calls or forced position adjustments.