Institutional-grade risk assessment for every asset pool.
Every asset pool on Marrow is assessed against five weighted factors before it goes live. The combined score determines the pool's tranche structure, LTV, and APR.
Independent appraisal of the underlying asset. We require reports ≤90 days old from approved valuation partners, plus market comparables and replacement cost analysis.
Maximum LTV is set per asset class based on historical volatility and liquidation timelines. Real estate allows up to 70%, equipment 55%, invoices 85%.
Track record of the operating business — years in operation, prior loan performance, default history, and management team credentials.
Debt service coverage ratio, revenue predictability, and the source of repayment. We model stress scenarios and require DSCR ≥ 1.25x.
Macro factors affecting the asset class — interest rates, sector trends, geographic risk, and liquidity of secondary markets for the collateral.
Each pool is split into three tranches with different risk-reward profiles. Lenders choose the tranche that matches their risk tolerance.
| Tier | LTV Range | APR Range | Description |
|---|---|---|---|
| Senior | 40–55% | 7.1–9.0% | First-loss protected, paid out first. |
| Mezzanine | 55–70% | 9.0–12.0% | Middle tranche, balanced risk-reward. |
| Junior | 70–85% | 12.0–14.8% | Highest yield, absorbs first losses. |