CHALLENGE 04 · INTERACTIVE SIMULATION
A fresh feed can still carry a stale valuation.
An asset’s assumed value falls over 90 days. Compare the latest reported valuation with the scenario’s underlying value.
Scenario levers
Starting value: $10m. The scenario assumes a straight-line decline over 90 days. Feed age is the age of the underlying appraisal, not the time since an oracle message.
Two views of the same asset
Starting value
$10.00m
Fixed debt
$6.00m
Valuation age
30 days
Refreshing an oracle message cannot refresh an old appraisal. Here, 30 days of valuation lag hides $0.40m of the modeled decline.
Apply a shock
No shock applied. Adjust a lever to explore the relationship.
Review threshold
Underlying LTV is below 75%. This alone does not establish that the loan is safe.
Scenario versus baseline
Baselines stay fixed at the starting settings with no shock, so every change you make is measured against the same reference.
Reported asset value
$9.20m
Baseline $9.20m
Assumed current value
$8.80m
Baseline $8.80m
Valuation gap
$0.40m
Baseline $0.40m
Model notes and assumptions
Assumptions: Starting value is $10m; debt is fixed at the chosen percentage of that starting value. Underlying value declines linearly over 90 days. A valuation aged d days reports the assumed value at day 90 − d. This constructed path is known only because this is a simulation.
Current value = $10m × (1 − decline); reported value = current value + ($10m − current value) × age / 90; LTV = debt / valuation.
An outage adds 30 days to age, capped at 90. A deeper markdown adds 15 percentage points to the decline, capped at 50%. Crossing the chosen loan-to-value (LTV) threshold flags a review; it does not initiate liquidation. No actual property value, price feed or lending policy is inferred.
Research basis: “RWA Tokenization Market Hurdles,” the research report reproduced on the overview page. This lab translates its qualitative themes into teaching scenarios; it does not treat the report’s market statistics or case-study claims as verified model coefficients. The operational chapter is split into liquidity and data freshness; regulation and expertise are combined in one explainer so all six research themes remain covered.
Reading the results: Inputs and shock magnitudes are illustrative assumptions. Outputs are arithmetic under those assumptions. Baselines are the initial input settings with no shock. No overall risk score, probability of loss, investment recommendation or legal determination is produced.