# List World Mobile (WMTx) on Liqwid as both collateral and a debt token

**URL:** https://gov.liqwid.finance/t/list-world-mobile-wmtx-on-liqwid-as-both-collateral-and-a-debt-token/1768
**Category:** Temperature Check
**Created:** [December 30, 2024, 11:25pm UTC](https://gov.liqwid.finance/t/list-world-mobile-wmtx-on-liqwid-as-both-collateral-and-a-debt-token/1768 "2024-12-30T23:25:09Z")
**Posts on this page:** 1
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### Author: ![anselmorei](https://yyz2.discourse-cdn.com/flex010/user_avatar/gov.liqwid.finance/anselmorei/32/620_2.png) [@anselmorei](https://gov.liqwid.finance/u/anselmorei)
#### Post date: [January 23, 2025, 7:02pm UTC](https://gov.liqwid.finance/t/list-world-mobile-wmtx-on-liqwid-as-both-collateral-and-a-debt-token/1768/13 "2025-01-23T19:02:21Z")

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Risk Framework for Cardano native tokens:

> [@Liqwid Risk Framework for Cardano Native Tokens](https://gov.liqwid.finance/t/liqwid-risk-framework-for-cardano-native-tokens/1386):
>
> Liqwid Risk Framework Introduction Any borrowing and lending platform relies on the collateral factor of an asset to set the maximum amount to be borrowed against the asset or to determine the liquidation threshold (Liquidation LTV) for an asset. Overall, the collateral factor of an asset reflects the perceived collateral quality and risk of the underlying asset. Therefore, the “Risk Framework” proposal aims to determine the relevant processes to: Select the eligible assets to be added on the…

**WMTx Risk Assessment Report**

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### **Overview**

This report evaluates World Mobile Token (WMTx) as a potential collateral asset for Liqwid using the Liqwid Risk Framework. Metrics such as trading volume, volatility, maximum drawdown, on-chain liquidity, and product status are analyzed to assess its risk profile.

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### **1. Average 24-Hour Trading Volume**

- **Reported Volume** : $6.99 million (source: CoinMarketCap).
- **Assessment** :  
WMTx falls into **Tier 2** (USD 1 million - 10 million), corresponding to a **Score of 0.7**.

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### **2. Volatility**

- **Reported Volatility** : 15% (standard deviation of daily price returns).
- **Assessment** :  
WMTx falls into **Tier 2** (10%-15% volatility), which corresponds to a **Penalty of -0.2**.

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### **3. Maximum Drawdown**

- **Reported Drawdown** : 10%.
- **Assessment** :  
WMTx falls into **Tier 1 (0%-20%)**, corresponding to **no penalty**.

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### **4. On-Chain Liquidity**

- **Reported Liquidity** : 5M ADA, equivalent to **$5 million** (at 1 ADA = $1).
- **Assessment** :  
WMTx falls into **Tier 2 ($3M - $10M)**, resulting in a **5% Liquidation Loan-to-Value (LTV) add-on**.

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### **5. Existing Product**

- **World Mobile** : An active product with a robust and engaged community.
- **Assessment** :  
While this does not directly affect the numeric scoring, it adds qualitative support for WMTx’s suitability as collateral.

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### **Risk Framework Summary**

1. **Trading Volume** : Score **0.7**.
2. **Volatility** : 15% → Penalty **-0.2**.
3. **Maximum Drawdown** : 10% → No penalty.
4. **On-Chain Liquidity** : **5% LTV add-on**.

### **Conclusion**

WMTx demonstrates a **low-to-medium risk profile** with strong trading volume, moderate volatility, low drawdown, and substantial on-chain liquidity. The minimal maximum drawdown (10%) significantly strengthens its risk profile.

**Recommendation** :

**Proposed WMT Risk Parameters:**

- Collateral factor (maxLTV): 58%
- Liquidation threshold: 60%
- Liquidation penalty: 17%

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_[View the full topic](https://gov.liqwid.finance/t/list-world-mobile-wmtx-on-liqwid-as-both-collateral-and-a-debt-token/1768)._