Itemized Haircut / design diagrams

Decision flows, supporting boards and model evidence. All shapes, labels and connected arrows are editable in the native Excalidraw files. Open a downloaded file in Excalidraw to revise it. SVG and PNG exports are ready to share.

Route the risk to the right lever

The decision ends in an eligibility row, not in a single unexplained score.

Editable ExcalidrawSVGPNG
Route the risk to the right lever
Read the diagram as text
  1. Inspect the price, liquidity, timing and concentration evidence
  2. Choose the policy lever that addresses the risk
  3. Recompute collateral coverage
  4. Keep unresolved risks visible
  5. Commit the asset eligibility row

What collateral coverage means

Compare the secured amount with proceeds after a horizon decline and sale cost.

Editable ExcalidrawSVGPNG
What collateral coverage means
Read the diagram as text
  1. Haircut determines the secured amount
  2. Stress changes the collateral value
  3. Exit cost reduces sale proceeds
  4. Compare proceeds and secured amount
  5. A historical pass is a diagnostic, not a guarantee

Coverage is a comparison of two amounts

Collateral arithmetic and the policy levers around it

Editable ExcalidrawSVGPNG
Coverage is a comparison of two amounts
Read the diagram as text
  1. Current value = V; haircut, decline and exit cost are fractions
  2. Secured amount
    V × (1 − haircut)
  3. Stressed sale proceeds
    V × (1 − decline) × (1 − exit cost)
  4. Compare: sale proceeds ≥ secured amount
  5. Route the evidence to a lever
  6. Price / exit risk → haircut
    Concentration → pledge size
  7. Timing → earlier review
    Unresolved eligibility → exclusion
  8. Historical coverage is a diagnostic; it does not guarantee future proceeds.

Evidence → lever → consequence → schedule

Asset examples and proposed adjustments are checks from the shared model

Editable ExcalidrawSVGPNG
Evidence → lever → consequence → schedule
Read the diagram as text
  1. Evidence / proposal
  2. Available lever
  3. Consequence
  4. A3 / price drift / +4 pts
  5. Haircut or exclusion
  6. Coverage at the selected mark
  7. A2 / exit cost / +3.5 pts
  8. Haircut or pledge cap
  9. Exit cost at the chosen size
  10. A4 / stability / +7 pts
  11. Haircut, review or exclusion
  12. Under-water distance
  13. A5 / release / +19 pts
  14. Haircut, review or exclusion
  15. Timing of the next review
  16. A6 / concentration / +4.5 pts
  17. Haircut or units-share cap
  18. Limit with a recorded reason
  19. Schedule: asset · eligibility · haircut · limit · review date · reason

A historical pass can leave a risk unresolved

Base-only coverage and evidence controls answer different questions

Editable ExcalidrawSVGPNG
A historical pass can leave a risk unresolved
Read the diagram as text
  1. Asset
  2. Coverage at base
  3. Evidence raised
  4. A1 / Treasury bill
  5. Pass
  6. No risk raised / control
  7. A2 / corporate bond
  8. Fail
  9. Exit cost / inside test inputs
  10. A3 / municipal bond
  11. Pass
  12. Price drift / outside history
  13. A4 / stablecoin
  14. Fail
  15. Stability / inside test inputs
  16. A5 / equity / 120 days
  17. Pass
  18. Release / outside history
  19. A6 / fund share
  20. Pass
  21. Concentration / outside history
  22. A2 and A4 fail at base. A3, A5 and A6 pass with risks the history cannot show.

From 30 ideas to six controls and one reusable pattern

Traceable curation from three July 2025 posts

Editable ExcalidrawSVGPNG
From 30 ideas to six controls and one reusable pattern
Read the diagram as text
  1. 23 retired
    11 purpose · 6 duplicates · 6 no desk decision
  2. 30 widget ideas
  3. 6 evidence and consequence controls
    Two peg monitors merge into one
  4. 7 source widgets kept
  5. Itemized waterfall pattern
    The total summarizes; each bar keeps a factor
  6. Both the controls and the pattern serve the eligibility workspace.