⚡ Fault Finance

Short Private Credit

Borrow tokenized private credit tokens using USDC collateral via Morpho Blue. Profit if NAV declines due to defaults or redemption pressure.

High-risk strategy. Read before trading.

Private credit NAV accrues interest continuously. Short positions lose money if NAV rises faster than borrow costs. These markets are illiquid — redemption can take up to 90 days.

1. Deposit USDC

Post USDC as collateral on Morpho Blue. No lock-up — withdraw anytime above health threshold.

2. Borrow nToken

Borrow the private credit token. The amount you borrow represents your notional short exposure.

3. Sell & Close

Sell via DEX (nCREDIT) or queue redemption via Teller. When NAV drops, buy back cheaper and repay.

Available Markets

A
nACRDXLive
Apollo Credit Fund · Apollo Global Management
Senior secured private credit from Apollo Global. NAV drifts up ~10% annually from interest accrual.
Current NAV
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Exit Path
Redemption only
Redemption
T+2 – T+90
Lend nACRDXShort nACRDX
W
nWISDOMLive
WisdomTree Short Duration Bond · WisdomTree
Short-duration fixed income product from WisdomTree. Lower yield, lower risk profile.
Current NAV
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Exit Path
Redemption only
Redemption
T+2 – T+30
Lend nWISDOMShort nWISDOM
C
nCREDITLive
Nest Private Credit Index · Nest Finance
Index of private credit vaults. Only token with DEX liquidity (Curve ~$68K daily volume).
Current NAV
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Exit Path
DEX + Redemption
Redemption
T+2 – T+90
Lend nCREDITShort nCREDIT
S
nSCOPELive
Hamilton Lane SCOPE Fund · Hamilton Lane
Hamilton Lane private markets fund. Longer redemption horizon, higher illiquidity premium.
Current NAV
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Exit Path
Redemption only
Redemption
T+30 – T+90
Lend nSCOPEShort nSCOPE

Enabling a Market

Each market requires two one-time steps before going live:

  1. Deploy MorphoBoringVaultOracle with the token's accountant address
  2. Create the Morpho Blue market: loanToken=nToken, collateralToken=USDC, oracle=above, lltv=0.77e18

Oracle contract is at src/MorphoBoringVaultOracle.sol. No admin keys needed after deploy.