Canonical Statement
DeFi-related positions and yield MUST be assessed as part of portfolio-level exposure and income patterns, using verifiable evidence and explainable aggregation over time.
Definition
Within this framework, DeFi assessment is a time-based interpretation of protocol events, position states, and valuation assumptions that distinguishes principal, yield, and realized outcomes where evidence supports it.
Why It Matters
Snapshot-only views miss income dynamics and can misstate wealth narratives. Time-windowed evidence and explicit assumptions are required for defensible outcomes.
Failure Mode if Ignored
Complexity is over-interpreted, valuation assumptions remain implicit, and conclusions cannot be traced to underlying events.
Scope & Non-Claims
This entry is scoped to regulated banking environments in the EU/UK and operational interpretation for DeFi exposure and yield assessment.
This entry does not provide legal advice, does not treat estimates as verified income by default, and requires human validation for final compliance determinations.
Related Concepts
- Wallets and portfolio-level assessment (EU) (model)
- On-chain vs off-chain evidence correlation (EU) (methodology)
- Source of funds vs source of wealth (crypto) (EU) (definition)