Factor’s architecture is built around a fundamental principle:
risk should be explicit, measurable, transparent, and aligned.
Unlike traditional credit markets—where risk is fragmented, opaque, and often misunderstood—Factor provides a systematic framework that identifies risks across the entire lifecycle of receivables and mitigates them through:
This creates one of the most robust risk frameworks in the RWA ecosystem.
Factor primarily manages five categories of risk:
Definition:
The risk that the underlying payer (insurer, SMB, developer, etc.) does not repay the receivable on time or at all.