Counterparty risk involves the potential for a counterparty to fail in fulfilling their obligations in an agreement or transaction. It also includes the risk of a third party acting illegally on Endaoment’s behalf without our knowledge or engaging in corrupt practices. This risk is categorized into two main areas: offchain and onchain. Offchain pertains to traditional transactions with brokerages, firms, or vendors, while onchain refers to transactions executed on a blockchain. Effective management of these risks is essential to maintain the integrity of our operations and the trust of our stakeholders.
Endaoment is committed to providing financial tools that ensure definitive settlement through the use of blockchain technology while adhering to all applicable anti-corruption statutes. We manage counterparty and anti-corruption risks through regular counterparty analysis and comprehensive code audits and reviews. Compliance with this policy is mandatory for all employees, contractors, board members, and representatives acting on behalf of Endaoment.
Conduct comprehensive due diligence on all potential and existing partners, vendors, and stakeholders to assess their risk levels concerning counterparty and anti-corruption risks.
Political Exposure Analysis
Evaluate interactions with government officials or entities to identify and mitigate risks related to political exposure.
All onchain partners must undergo an evaluation process that assesses their public reputation, history of reliability, past activities (including any incidents of hacks or data breaches), and, if applicable, the integrity of their smart contracts, tokens, and other onchain infrastructure.
All offchain partners must undergo an evaluation process that assesses their public reputation, history of reliability, and past activities (including any incidents of hacks or data breaches).
Implement stringent controls and regular reviews of vendor relationships to ensure compliance with Endaoment’s counterparty and anti-corruption standards.
Ensure that critical procedures and systems have segregated duties to prevent any single individual from having full control over any process without oversight.
Approval Processes
Maintain segregated claim diligence and approval processes to uphold checks and balances.