Every vault and loan broker on the XRP Ledger gets a risk grade from A to F. We use only what is public on the ledger — the vault, the broker, its loans and their payment status. Nothing is self-reported and nobody pays for a grade.
What a risk grade is not
It is not a credit rating and says nothing about any borrower: XRPL loans have no collateral and the decision to lend is made off the ledger. It is not investment advice. A good grade can go bad quickly if borrowers stop paying.
The scale
Every vault and broker starts at 100 points. A = 85 or more, B = 70–84, C = 55–69, D = 40–54, F = below 40.
Loan brokers (the managers who make the loans)
Defaulted loans: minus 3 points for every 1% of the broker's outstanding principal that is in loans marked defaulted, up to minus 60. [B-DEFAULT]
Impaired loans: minus 1.5 points for every 1% of outstanding principal in loans the broker has marked impaired, up to minus 30. [B-IMPAIRED]
Late loans: minus 1 point for every 1% of outstanding principal in loans past their payment due date (not yet defaulted), up to minus 20. [B-LATE]
First-loss cover (the broker's own money that absorbs losses before depositors), as a share of what it has lent: 10% or more, no change; 5–10%, minus 5; 1–5%, minus 12; under 1%, minus 20. [B-COVER]
Cover below the broker's own required minimum (debt × its minimum cover rate): minus 15. [B-COVER-MIN]
One loan over 50% of outstanding principal: minus 10. Over 25%: minus 5. [B-CONCENTRATION]
Fewer than 5 loans ever made, or a broker less than 90 days old: the grade is capped at B, because there isn't enough history to earn an A. [B-HISTORY]
A broker that has nothing lent out gets N/A — there is nothing to grade yet. [B-NONE]
Vaults (where depositors' money sits)
A vault starts from the average score of the brokers lending from it, weighted by how much each has lent. A vault with nothing lent out starts at 100. [V-BROKERS]
Unrealized loss the ledger has recorded against the vault: minus 2.5 points for every 1% of the vault's total value, up to minus 50. [V-LOSS]
Share of the vault lent out (utilization): over 95%, minus 15 — withdrawals may have to wait for repayments; over 85%, minus 7. [V-LIQUIDITY]
Realized yield (change in the value of one vault share, annualized, measured over at least 30 days) below zero: minus 15. [V-YIELD]
A vault less than 90 days old is capped at B. [V-HISTORY]
An empty vault gets N/A. [V-NONE]
Words we use
Utilization: the share of a vault that is lent out (total value minus what is available, over total value).
Cover ratio: the broker's first-loss cover against what it must hold — its debt × its own minimum cover rate. 1.0× is exactly the minimum.
Late: past the next payment due date. Impaired: the broker has flagged the loan as at risk. Defaulted: the broker has declared the loan in default.
Realized yield: how much one vault share has gained or lost in value, annualized, measured over up to the last 30 days.
Risk grade computed only from public XRP Ledger data by XRPLHub's published method. Not a credit rating, not an assessment of any borrower, not investment advice. Grades are recomputed every hour once XRPL lending is live. Method version lending-grade-v1; any change gets a new version number.