DeltaPrime

DeltaPrime is outside the current firm shelf because its structure belongs to the leveraged-looping policy class. This is a firm policy decision, not a negative quality rating or a client trade instruction. The facts below cover how it works, who controls it, how losses occur, and how clients exit.

Review triggers: events that reopen the verdict
• Ships a separate account or product whose contracts prevent borrowing, margin and liquidation and whose live positions, authorities, incidents and proposed-size exit are independently verifiable

Watched nightly: a warning on its venues or files, or a cited document that changes, reopens the memo. The first confirmation is due 2026-11-15.

The research file

Mechanism applicability

DeltaPrime is a cross-margin borrowing platform. Lenders fund liquidity pools. A borrower combines collateral with borrowed assets inside a dedicated Prime Account contract, then deploys the combined balance across approved trading, liquidity and farming protocols. DeltaPrime documents borrowing power as high as 5x for some assets and liquidation when account health reaches insolvency. These facts place it directly within the v1 leveraged-looping dossier’s leveraged-yield-farming scope.

Current observation and lifecycle

The DefiLlama protocol API read on 2026-08-15 classified DeltaPrime as Leveraged Farming and reported approximately $3.51M TVL, split between about $1.89M on Avalanche and $1.62M on Arbitrum. Current documentation and a recently updated account guide still describe live Prime Accounts, cross-margin balances and liquidation states on both chains. This shows that the product is active rather than archived.

Control and exit applicability

The borrower directs a dedicated smart contract but cannot transfer borrowed capital freely. DeltaPrime approves integrations, and liquidation bots may force repayment. Account health is calculated across all assets and debts, so losses from prices, oracles, interest rates, LPs and integrated protocols can spread through the portfolio. A borrower can withdraw or repay only if assets inside integrated positions remain accessible. An account marked for liquidation cannot transact until liquidation ends.

Why the class rule decides

The v1 leveraged-looping rule decides regardless of TVL because DeltaPrime advertises multiplied returns from borrowed capital and enforces portfolio-wide liquidation. Cross-margin diversification can delay a trigger, but it can also spread losses across integrated positions. It does not make forced sale suitable for the advised sleeve. Reopen only for a separate account or product whose contracts prevent borrowing, margin and liquidation, after independently checking current positions, roles, incidents, liquidity and the proposed-size exit.

Class rule

The leveraged looping class is outside the approved structures, so every protocol in it is not approved until the rule changes. The rule is about the structure, not an adverse finding about this protocol, and it is not a client instruction. The events that would reopen it are listed with the memo.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• DeltaPrime — protocol overview · primary · accessed 2026-08-15
  Supports: Avalanche, Arbitrum, lending pools, borrowed capital, dedicated account contract, cross-margin
• DeltaPrime — Prime Account controls · primary · accessed 2026-08-15
  Supports: dedicated smart contract, whitelisted protocols, trading, liquidity provision, farming, liquidation bots
• DeltaPrime — health and borrowing power · primary · accessed 2026-08-15
  Supports: cross-margin, 5x borrowing power, health, insolvency, liquidation threshold
• DeltaPrime — liquidation mechanics · primary · accessed 2026-08-15
  Supports: partial liquidation, whitelisted bots, insurance pool, loan repayment, liquidation bonus
• DeltaPrime — current account state and exit constraint · primary · accessed 2026-08-15
  Supports: current lifecycle, borrowed balance, interest, cross-asset health, transaction freeze during liquidation
• DefiLlama — DeltaPrime survey record · secondary · accessed 2026-08-15
  Supports: current TVL, Avalanche, Arbitrum, Leveraged Farming category, survey observation

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The layer with the most administrative power sets the position’s effective control; that describes control, not quality or suitability.