S&P Global Ratings has launched a risk assessment framework for digital asset lending vaults as the onchain investment products gain traction.

According to Monday’s announcement, the framework evaluates vaults across six areas: portfolio credit quality risk, liquidity mismatch risk, curator risk, blockchain risk, protocol risk, and vault security and governance risk.

S&P said the assessments will evaluate the risk of losses to investors in lending vaults, but will not constitute credit ratings or evaluate yields. As well, the framework was not designed to single out any one category of the six that poses a greater risk than the others, according to S&P Global Ratings analyst Lisa Schroeer.

“A material weakness in any factor can…