> For the complete documentation index, see [llms.txt](https://delpho.gitbook.io/delpho-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://delpho.gitbook.io/delpho-docs/audits-and-security/risk-advisor-reports.md).

# Risk advisor reports

Delpho works with StableWatch on ongoing quantitative risk modeling. The relationship is structured as a recurring engagement rather than a one-off pre-launch report.

## What the engagement covers

* **Initial parameter selection.** The first publicly documented output was the move of HYPE/kHYPE from 75% to 65% maximum initial LTV based on the StableWatch report. The 65% figure was set after Monte Carlo simulation of stress scenarios.
* **Ongoing monitoring of borrow-rate dynamics.** Borrow costs on the lending side affect the spread that feeds sUSDV. The advisor relationship includes ongoing review of borrow-rate behavior.
* **Stress scenarios that inform reserve sizing.** As the protocol grows, the appropriate size of the treasury reserve scales with the protocol's exposure. The advisor produces stress scenarios that inform the reserve target.
* **Backtest review.** The 10 October 2025 ADL crash backtest is the most recent publicly referenced output. See [Stress test results](/delpho-docs/risk/stress-test-results.md) for the full narrative.

## Published reports

| Report                      | Date       | Summary                                                            |
| --------------------------- | ---------- | ------------------------------------------------------------------ |
| Initial parameter selection | April 2026 | Move HYPE/kHYPE from 75% to 65% initial LTV.                       |
| ADL crash backtest          | April 2026 | \~0.25% peak sUSDV drawdown during the October 10, 2025 ADL event. |

## Why this matters

External quantitative oversight retained on a recurring basis is uncommon among peer protocols, which more often publish a single pre-launch risk report and treat it as a credential. Delpho's framing is that risk modeling is operational, not just credentialing.

This page exists to make the relationship visible. The intent is that an allocator should be able to verify the quantitative basis of parameter selection without taking the protocol's word for it.

## Related Pages

* [Parameters](/delpho-docs/parameters.md), for the current values that StableWatch input informs.
* [Stress test results](/delpho-docs/risk/stress-test-results.md), for the full 10 October backtest.
* [Smart-contract and execution risk](/delpho-docs/risk/smart-contract-and-execution-risk.md) and [Funding rate risk](/delpho-docs/risk/funding-rate-risk.md), for the risk-side framing this work supports.