Risks & Mitigants
Settlement & Counterparty Risk
Risk: Payment flows involve multiple intermediaries—payment gateways, aggregators, banks, and fiat rails. Delays, failures, or defaults at any point in the settlement chain could impact recovery of financed receivables.
Mitigants:
Short-duration financing windows (typically 1–7 days)
Financing secured against in-flight payment receivables, not unsecured credit
Diversified gateway, aggregator, and banking partners across geographies
Continuous reconciliation and transaction-level monitoring
Liquidity Risk
Risk: A sudden spike in payment volume or payout demand could temporarily strain available liquidity in PayFi credit pools.
Mitigants:
Dynamic liquidity allocation based on real-time flow data
Conservative utilization thresholds and buffers
Ability to throttle settlement speed selectively by corridor or partner
Diversified liquidity sources (stablecoins + fiat liquidity partners)
FX & Volatility Risk
Risk: FX movements during the settlement window could impact margins, especially in emerging market corridors with higher volatility.
Mitigants:
Short settlement duration minimizes FX exposure
Real-time FX pricing at transaction initiation
Corridor-specific pricing and spread buffers
Ability to hedge or dynamically reprice flows when volatility increases
Stablecoin & Blockchain Risk
Risk: Dependence on stablecoins introduces smart-contract risk, blockchain congestion risk, and potential stablecoin de-pegging events.
Mitigants:
Use of widely adopted, fully reserved stablecoins
Multi-chain support to avoid single-network dependency
Operational controls to pause flows during extreme market events
Stablecoins used as liquidity rails, not speculative assets
Regulatory & Compliance Risk
Risk: Payments and stablecoin usage operate in evolving regulatory environments, particularly across emerging markets.
Mitigants:
Credible operates within regulated frameworks where required (FIU, licensed partners, compliant rails)
Clear separation between payment settlement infrastructure and financial advisory or lending activities
Jurisdiction-specific flow controls and KYB/KYC enforcement
Ongoing legal review and engagement with banking and regulatory partners
Operational & Integration Risk
Risk: Failures in API integrations, reconciliation systems, or operational processes could disrupt settlement or reporting.
Mitigants:
Modular orchestration layer with redundancy across gateways and rails
Automated reconciliation and exception handling
Gradual corridor onboarding with volume caps
Dedicated operational monitoring and escalation workflows
Credit Risk Misinterpretation
Risk: Market participants may incorrectly view Credible as a traditional lender, increasing perceived credit risk.
Mitigants:
Credible does not underwrite merchants or consumers
Financing is flow-based, short-duration, and receivable-backed
No long-term balance-sheet exposure or unsecured lending
Clear contractual and structural separation from traditional credit products
Concentration Risk
Risk: Over-reliance on specific corridors, payment methods, or partners could create exposure to localized disruptions.
Mitigants:
Multi-corridor strategy across developed and emerging markets
Support for multiple payment methods per geography
Active diversification of merchant and neobank partners
Continuous monitoring of volume concentration limits
Last updated