TFIP-24: Proposal to Appoint Type3 as TrueFi Credit Risk Advisor

Date: May 17, 2025

Abstract:

Type3 formally proposes to the TrueFi DAO to be appointed as a dedicated Credit Risk Advisor (CRA). We aim to leverage our expertise in traditional finance and our upcoming Global Corporate Finance License from Mauritius to onboard high-quality, tokenized product offerings onto the TrueFi platform. Our strategy combines global sourcing efforts, a robust due diligence framework, and the strategic use of technology and outsourcing to ensure efficient and compliant operations. The value alignment of our offering is underscored by a proposed KPI-driven remuneration schedule, highly weighted towards attracting TVL to our upcoming vaults, achieved in partnership with Enclave Digital Wealth, an SEC-registered RIA. We believe this will significantly contribute to TrueFi’s growth in the Real-World Asset (RWA) sector and provide attractive, risk-mitigated opportunities for the TrueFi community.

Motivation:

TrueFi has established itself as a leading protocol in decentralized lending, with a growing emphasis on RWAs. Type3 recognizes the immense potential in bridging institutional-grade financial products with DeFi liquidity and composability. Our core value proposition is to source and onboard traditional fund clients seeking to tokenize their fund offerings. This initiative will bring a new class of institutional-grade assets to TrueFi, enhancing diversification and yield opportunities for lenders.

Type3 Capital

A team comprising crypto natives, traditional finance professionals and entrepreneurs, Type3 possesses leveraged loan, private credit, and structured finance origination, underwriting, and loan management experience from institutional and startup environments. Mandated by funds, corporates, and protocols, Type3 is KPI-driven and goes the extra mile to deliver.

Enclave Digital Wealth

Enclave Group is a private consortium built for founders, families, and digital asset investors who live outside the traditional system. Through Enclave Digital Wealth (RIA) and Private Circle (multi-family office), we deliver discreet, high-touch management of wealth, privacy, and global structures -integrating asset protection, entity control, and crypto-native strategies under one roof.

We are in the final stages of securing our Global Corporate Finance License from the Financial Services Commission (FSC) of Mauritius. Enclave Wealth Group, as an authorized SEC Investment Advisor, will be able to recommend TrueFi Vaults to its client base. These licenses underscore our commitment to operating within a recognized regulatory framework and adhering to international best practices for financial services. This regulatory standing will provide an additional layer of assurance to the TrueFi DAO and its lenders.

Proposed Scope of Work as Credit Risk Advisor:

As a TrueFi Credit Risk Advisor, Type3 will undertake the following key responsibilities:

1. Sourcing and Onboarding Various Users for Truefi Vaults:

2. Borrowers / Lenders in Crypto Native and RWA space

3. Tokenized Funds

4. Other users

Our established relationships in the traditional and digital fund sector provide a strong pipeline of potential deals, ranging from tokenized Trade Invoice Funds and Permian basin oil fields.

2. Rigorous Due Diligence:

We will implement a comprehensive due diligence process covering:

Fund Assessment: Financial health, track record, management team quality, governance, and operational capabilities of the team. Tokenization Viability: Legal and technical feasibility of tokenizing fund interests, including review of LPAs and asset suitability. Credit Risk Analysis: Credit scoring and risk profiling, augmented by AI tools for enhanced analysis. 3. Deal Structuring and Legal Framework:

We will structure credit facilities tailored to borrowers, including defining loan terms, covenants, and collateralization. We will work with legal experts specializing in DeFi and tokenization to prepare robust legal documentation.

4. Ongoing Portfolio Monitoring and Reporting:

We will provide continuous monitoring of active deals, manage client relationships, enforce covenants, and deliver transparent, regular reports to the TrueFi DAO on portfolio performance and risk metrics.

5. Additional Value Proposition

Type3 will make use of the partnership work laid down by Cicada and TrueFi to onboard current contracted clients. TrueFi will benefit from Type3’s investment in global business development over the past year, which includes strategic partnerships, licenses, and infrastructure investments. Type3 clients include sovereigns, institutional investors, and major infrastructure projects. They have engaged Type3 to help advise and facilitate their asset tokenization strategies. Type3 was recently invited to attend a royal banquet in Abu Dhabi, subsequently advising on a tokenisation initiative for the country’s sovereign assets. Working with specialist fund managers, Type3 clients have fundraising requirements of in excess of $5bn, which range from pre-development solar project financing in Malawi, to producing oil wells in the Permian basin. We are especially excited by an upcoming tokenized US Trade Finance Fund product, with committed TVL, which we see as the natural progression up the risk curve from tokenized treasuries. Moreover, our client bases alignment to addressing UN Sustainability Development Goals opens the prospect of accessing large-scale donor grant programmes towards TrueFi vaults, alongside crypto native investor interest. As investors, we are well aware of the failures of previous RWA credit product lines and plan to mitigate these with judicious transactions and legal structuring, insurance, and institutional investment partners. Providing a dedicated origination and risk management function for TrueFi will enable us to focus on providing compelling risk-adjusted yield opportunities to the benefit of $TRU holders. Remuneration Model:

Type3 proposes a remuneration model involving a combination of origination fees and performance-based fees. We propose the following ongoing fee structure:

We believe our specialized focus on tokenized funds, our regulatory standing, and our dedicated team make us a strong candidate for the role.

$150,000 every 6 months, $30,000 initiation fee, $50,000 $TRU new vault opening fee: $25,000 bonus for TVL > $200k Additional $25,000 bonus for TVL > $500k, sustained for at least 3 months Additional $12,500 bonus for TVL > $750k, sustained for at least 3 months Additional $12,500 bonus for TVL > $1m, sustained for at least 3 months $50,000 bonus for sustained TVL > $500k sustained for at least 6 months $50,000 bonus for incremental $1m up to $10m TVL Type3 is excited by the prospect of contributing to the TrueFi ecosystem. We believe our specialized focus on tokenized funds, our regulatory standing, and our dedicated team make us a strong candidate for the role. We request the TrueFi DAO community to review our proposal and welcome any questions or discussions.

We look forward to a favorable consideration and the opportunity to build a successful RWA lending vertical on TrueFi.

Thank you for your consideration.

The Type3 Team