# LlamaRisk | Legal Review of Payward MLA **URL:** \ **Category:** General\ **Tags:** risk-committee\ **Created:** [July 23, 2026, 3:53pm UTC](https://gov.ethenafoundation.com/t/llamarisk-legal-review-of-payward-mla/813 "2026-07-23T15:53:44Z")\ **Posts on this page:** 1\ **Page:** 1
**Author:** ![LlamaRisk](https://yyz1.discourse-cdn.com/flex003/user_avatar/gov.ethenafoundation.com/llamarisk/32/426_2.png) [@LlamaRisk](https://gov.ethenafoundation.com/u/LlamaRisk)\ **Post date:** [July 23, 2026, 3:53pm UTC](https://gov.ethenafoundation.com/t/llamarisk-legal-review-of-payward-mla/813/1 "2026-07-23T15:53:44Z")
## Summary LlamaRisk has conducted a legal review of the Master Loan Agreement governing Ethena’s reserve-backing asset deployment to Payward Trading Limited (an institutional entity within the Payward / Kraken group). ## Scope of Review LlamaRisk assessed counterparty structure and regulatory standing, asset protection mechanisms (collateral, security interests, enforceability), operational provisions (loan origination, termination mechanics, reporting), default and remedies architecture, and protocol-specific considerations relevant to digital asset lending. The specific contractual terms, commercial thresholds, and pricing provisions are confidential and are not disclosed in this public summary. ## Findings The Payward MLA establishes a bilateral lending framework with Payward Trading Limited, a British Virgin Islands entity within the Payward corporate group (trading as Kraken). A notable structural feature is the tri-party custody arrangement: the collateral is held by a third-party qualified custodian (Anchorage) under an Account Control Agreement and a Collateral Management Agreement, placing collateral control outside the Borrower group and separating it from Borrower solvency, while preserving Ethena’s secured claim over the collateral. The Payward MLA provides a sound and appropriately protective framework for the deployment of Ethena’s reserve-backing assets. No recommendations on amendments or fixes have been issued by our side. ## Conclusion **LlamaRisk supports the Risk Committee’s approval of the Payward Master Loan Agreement** for the deployment of Ethena’s reserve-backing assets.