Underwriting and Investment Committee

No capital moves until a position has cleared seven knock-out gates, been scored on Nara's 42-criteria scorecard, and been approved unanimously by the three-member Investment Committee. Every funded position is then managed under the same committee that approved it.

The scorecard

Every deal is scored against a fixed scorecard: 8 weighted pillars, 42 criteria on a 1 to 5 scale, and a 41-item document and KYC checklist. Scores are assigned only where evidence supports them. Unevidenced criteria stay open as follow-ups rather than being estimated, and N/A is excluded from the average rather than treated as zero.

Pillar	What it measures
Originator and sponsor quality	Operating history and realized losses, management, regulatory standing, financial strength, sponsor skin in the game
Receivables and asset quality	Self-liquidating character, tenor, historical loss rate, dilution, days-to-collect versus stated tenor, eligibility rules
Obligor and concentration	Who ultimately pays, portfolio granularity, single-obligor and corridor concentration
Settlement and repayment mechanics	Lockbox and payment control, verification of underlying flows, settlement timing
FX and corridor	Currency mismatch, hedging policy, corridor stability
Legal recourse and structure	SPV and true sale, security, advance-rate cushion, backup servicer, enforceability
On-chain and operational	Audited contracts, key controls, oracle and data dependencies
Yield, liquidity and transparency	Yield versus risk, redemption terms, reporting quality

Rating bands

Rating	Weighted score	Action
Investment Grade	4.00 and above	Proceed; standard structure
Approved	3.00 to 3.99	Proceed with conditions
Elevated Risk	1.50 to 2.99	Requires mitigants, reserves or tighter structure before capital is committed
Not Acceptable	Below 1.50	Decline absent fundamental restructuring

Knock-out gates

Any one of the following declines a deal regardless of its score.

1. No independent mechanism verifies that the underlying receivables or payment flows exist and are valid.

2. The borrower is fully pseudonymous, with no KYC'd legal entity and no enforceable off-chain recourse.

3. Circular flow: the same party is borrower, collateral source and repayment source.

4. Pooled investor capital is handled by unaudited smart contracts.

5. The originator is sole servicer with no lockbox or payment control and no independent oversight.

6. Live pooled funds are controlled by a single admin key or EOA, with no timelock and no multisig.

7. A sanctioned counterparty or corridor, or an unresolved AML or compliance red flag.

From origination to funding

Step	Output	Gate
1. Source and screen	Originator KYC; corridor, obligors and settlement structure mapped	Any knock-out stops the deal here
2. Underwrite	Evidence file across the eight pillars; every judgement cited
3. Score and rate	Weighted score and rating	Not Acceptable is declined; Elevated Risk needs added structure to advance
4. IC memo	Proposed terms, key risks and open follow-ups, circulated to all three members	A Head of Credit assessment and a score above 3 / 5 are required to reach the committee
5. IC vote	Approve, approve with conditions, or decline	Unanimous. Any dissent returns the deal for rework or declines it
6. Conditions and fund	Legal, lockbox and KYC conditions cleared	Capital is released only after conditions clear

The Investment Committee

Three members: the CEO, one co-founder, and the Head of Credit (see Team). All three vote explicitly on every deal. Approval, including approval with conditions, must be unanimous; no member's approval is presumed.

Live positions: monitor → act

1. Monitor. Pool reports, on-chain flows, obligor performance and covenant compliance, continuously. Borrower utilization and repayment timing are checked daily for active lines; the liquid reserve daily; protocol and stablecoin exposure daily or weekly; NAV and reporting at month-end with exception checks.

2. Trigger. An early-warning threshold is breached: concentration, dilution, delay or covenant. In direct facilities, borrowers report transaction activity regularly and may draw only against transactions, up to 80% to 90% of reported volume. A covenant breach opens a 5-day cure period during which Nara investigates.

3. Re-underwrite. The position is re-scored and the severity of the issue is assessed.

4. IC decision. Maintain, amend and extend, reduce exposure, add reserves, or exit and enforce.

5. Execute and record. The action is implemented and documented for the file.

Breaches of allocation or concentration limits, whether passive (driven by market movement or redemptions) or active, are recorded with a remediation plan. Nara keeps a breach log so allocators can see how the book behaves under pressure.