# MIP55c3-SP12: Commercial Risk and Legal Domain Work to Support SF-001 Expanded Mandate Related to RWAs

## Preamble

```
MIP55c3-SP#: 12
Author(s): @Aes 
Contributors:
Tags: spf
Status: Accepted
Date Proposed: 2022-11-27
Date Ratified: 2023-01-23
Amount Requested: 209K DAI
Recipient Address: TBD
Forum URL: https://forum.makerdao.com/t/mip55c3-sp12-commercial-risk-and-legal-domain-work-to-support-sf-001-expanded-mandate-related-to-rwas/18943
Ratification Poll URL: https://vote.makerdao.com/polling/QmTjgcHY
```

## Sentence Summary

This SPF requests a 209K DAI to support SF-001’s [expanded mandate](https://forum.makerdao.com/t/mip39c2-sp36-modifying-strategic-finance-core-unit-mandate-sf-001/17750) regarding RWAs.

## Paragraph Summary

This SPF provides funding for onboarding a structured finance consultant and legal counsel to perform commercial and legal risk analysis on RWAs greenlit by MKR holders and in consideration for onboarding. These contributors will also be responsible for monitoring RWA vaults and developing reporting to provide transparency of vault performance to the community. These individuals will also be helping structure the relationship between Maker Core, future ProtectorDAOs, and the Arrangers, focusing on defining key constraints with the help of the community to ensure Maker Core and DAI holders are protected as we all navigate implementation of the End Game Plan.

## Special Purpose Fund Name
Risk & Legal Work to Support RWA-related Activities

## Special Purpose Fund Scope
- Review each existing RWA collateral, determine if risk parameters are appropriate, recommend changes to MKR holders if necessary
- Monitor and create reporting for existing RWA vaults
- Collaborate with community regarding how the RWA Council should oversee MetaDAOs - design constraints in collaboration with ALM contributors to ensure ample liquidity under significant market stress
- Commercial and legal assessments for community approved RWA collaterals as needed
   - Review of the legal structures
   - Review of the resolution, wordings and workflow
   - Review of the agreement between entities and service providers
   - Writeups of Legal Structure and Governance Appropriateness Verification
   - Other open legal review questions identified along the way
   - Commercial risk analysis: including but not limited to sponsor or arranger risk, credit risk, concentration risk, servicing risk, etc.
   - Review of the commercial structure: flow of funds, leverage profile, credit enhancement, servicing mechanics, scaling/ramp-up/utilization structure, reps/warranties/covenants

### Background of Individuals

Structured Credit – @roo
-    Most recently worked for five years as an analyst and trader at an award-winning structured credit hedge fund and asset manager (>$10bn AUM) 
-    Three years of experience structuring and syndicating Collateralized Loan Obligations for a bulge bracket New York City investment bank
-    One year of experience in institutional investment grade corporate credit sales
-    Education: BA in Computer Science, with a minor in Markets and Management Studies from Duke University

Legal Counsel – TBD

|Expense Type|Dai|
| --- | --- |
| Compensation | 180K DAI|
|External Legal |20K DAI|
|Travel |9K DAI|
|**Total**|**209K DAI**|

### Funding Breakdown
- Funding will be done in a lump sum upon Governance Approval of the SPF.
- Period will cover from mid Q4 through Q1 2023.  
- Excess funds will be held in the multi-sig until the work is complete.
- Unspent funds will be returned to the Surplus Buffer.

### Special Purpose Fund Details


```
Official Contact or Group Name: Risk & Legal Work to Support RWA-related Activities Team
Contact Email/Handle: @Aes
Date Added: 2023-01-23
Total Amount: 209K In Dai.
Wallet Address: TBD
Comptroller signers: @Aes, @prose11
```