# Collateral Application Template

**Background Information**

1.  Who is the interested party for this collateral application?
2.  Provide a brief high-level overview of the project, with a focus on the applying collateral token.   
3.  How long has the project been live in production?    
4.  Provide a brief history of the project.   
5.  Link the whitepaper, documentation portals, and source code for the system(s) that interact with the proposed collateral, and all relevant Ethereum addresses. If the system is complex, schematic(s) are especially appreciated.

**Asset Information**

6.  What type of asset is it? (e.g. store of value, currency, commodity, capital asset, governance token etc.)
7.  How is the asset used and does it give any rights to holders? (e.g. financial claims, dividends, governance rights)
8.  What is the market cap for the asset?
9.  Where does exchange for the asset occur?
    9.a  Provide exchange data on market liquidity, volume and order book depth.
10.  Is the asset settled on chain (trustless) or off chain (trusted)?
11.  If offchain (trusted) settlement: describe what are the involved entities, process and estimated time.
12.  List any possible oracle data sources for the proposed collateral type.
13.  List any parties interested in taking part in liquidations for the proposed collateral type.

**Business Questions**

14.  What is/are the expected use case(s) of the Dai generated by the vault?
15.  What is the amount of Dai expected to be generated against the collateral and what is the timeline? Is there a commitment on a minimum amount of Dai to be generated?
16.  What are the strategic benefits for MakerDAO in onboarding the collateral?

**Legal Questions**

17.  What are the legal risks associated with the tokens?
18.  (Optional) Does one organization bear legal responsibility for the collateral? What jurisdiction does that organization reside in?
19.  (Optional) Has your project obtained any legal opinions or memoranda regarding the regulatory standing of the token or an explanation of the same from the perspective of any jurisdiction? If so, those materials should be provided for community review.
20.  (Optional) Describe whether there are any regulatory registrations for the token and provide related documentation (including an explanation of any past or existing interactions with any regulatory authorities, regardless of jurisdiction), if applicable.
21.  Is issuance of the asset decentralized (trustless) or centralized (trusted)?
        21.a. If centralized/trusted: by which legal entity, type of entity and jurisdiction?

**Technical Questions**

22.  Link any available audits of the project. Both procedural and smart contract focused audits.
23.  Has the token (and/or supporting protocol) been formally verified?
24.  Does the asset follow a token standard? (E.g. ERC20, ERC721, ERC1400)
25.  Is the asset, or asset balances, controlled by a central actor, or group of actors (e.g. through a multisig, or DAO)?
26.  Does the token have whitelist or blacklist functions? If so, what is the process for utilization and what stakeholders are involved?
27.  Can the token implementation be upgraded/changed? If so, what is the process and what stakeholders are involved?
28.  Does the token contain rebasing logic?


The following questions apply to **RWA** collateral onboarding applications **only**:

29. Provide (a) proposed legal structure for transaction, including: type of legal entities, (offshore/onshore, form (trust, corporate, other)) and jurisdiction(s) of legal entities, and (b) likely funds flow (DAI => Fiat => DAI).
30. Provide details on the organizational structure of the interested party, beneficial ownership, governance/control, key personnel, capital/funding resources and past financial performance.
31. Provide detailed summary of the proposed economic terms of the transaction, including, without limitation: commitment term, principal amount, interest rate, frequency of principal and interest payments, disbursement schedule, equity amount, funding ratios (equity/debt pro rata, equity first, etc.), collateral security, coverage ratios, currency (if not DAI) and other material terms. The quality of the proposed economic terms will be a consideration for the prioritization process.
32. Identify in reasonable detail the risks associated with this collateral application and the underlying asset(s) and proposed mitigants (if any). The risk summary should address, without limitation and to the extent relevant: market risks, commercial risks (e.g., diversification, credit, etc.), interest rate risks, legal and regulatory risks, general industry risks, competition, etc.
33. Outline the applicant’s underwriting guidelines/policies, origination strategy (marketing, sales, channels), servicing strategy (charge-offs, collections), and historical asset performance.
34. Outline the applicant’s risk monitoring and operations guidelines/policies (e.g., charge-offs, collection, recovery provisions, data collection and technology, etc).
35. Describe the regulatory regime applicable to the underlying asset (if any) and the applicant’s legal and compliance program relating thereto.
36. Identify any 3rd party persons likely to be relied upon by applicant to implement the transaction (legal, accounting, servicers, trustees, etc.).