---
# System prepended metadata

title: Financial Requirements

---

---
title: Financial Requirements
order: 3
hideLanguageSelector: true
keywords: "format, event, events, meetup, meetups, guide, agenda"
description: "The financial requirements for proposing new collateral for the Maker Protocol."
---

# Financial Requirements

This section describes which financial information to provide to a risk team. 

This guidance hasn’t yet been approved by MKR holders as a template for risk teams to use, so be aware that there may be changes to this section.

## Due Diligence

As part of the risk evaluation, a risk team must conduct a due diligence process. 

We request you provide the following information to help facilitate this process:

<Process>

<Box>

### Classification

Specific information may be requested depending on the classification of the collateral asset.

Broadly speaking, collateral assets can be separated into two categories: 

<List>

- Crypto-native assets

- Security Tokens 

</List>

Crypto-native assets (often referred to as ‘bearer’ assets) are coins such as bitcoin and ether that have no counterparty risk. Possession of the token is equivalent to direct ownership of the asset. 

Conversely, ‘registered’ assets, such as tokenized securities, are merely claims or receipts on an underlying asset. These tokens require a recourse analysis, the process by which a token can be redeemed for the underlying asset. 

</Box>

### Overview

We require a short summary of your project. Please distinguish between the business sector (i.e., decentralized exchange, prediction market, payments platform, etc.) and the token use case (i.e., utility token, work token, governance token, etc.). 

All relevant documentation must be submitted; including, but not limited to:

<List>

- White Paper(s)

- Pitch deck

- Roadmap

- Budget

- Burn rate

- Runway

- Treasury Management

</List>

</Box>

<Box>

### Issuance

For bearer assets, describe the nature of the issuance. 

If there was an ICO, please disclose the following information

<List>

- Date

- Raise amount

- Valuation

- ICO price

- Token distribution

- Seed investors 

- Lockups

- Circulating supply

</List>

</Box>

<Box>

### Markets

Please present a detailed trading profile, including, but not limited to:

<List>

- Exchange listings

- Liquidity providers


</List>

Liquidity is an important aspect that directly influences a Keeper’s ability and willingness to purchase collateral in a liquidation auction. 

Liquidity results in a lower Liquidation Ratio and higher Debt Ceiling.

</Box>

<Box>

### Community

Please provide links to primary communication platforms (e.g. email, Telegram, discord, reddit, etc.) on which you can be reached. 

All information requested herein, including documents, must be provided via email.

</Box>

</Process>