The agreement
Terms
Ketro lends against a position that ends at exactly $0 or $1 on a known date, using contracts that have not been audited and a price feed the protocol itself writes. These terms say what that means for a borrower and for a lender, in the same words the rest of the site uses.
001 / WHAT THIS IS
Ketro is software. The contracts on Polygon hold collateral and issue loans according to their own code; this website is one way of talking to them, and not the only possible one. Nothing here takes custody of your funds in the sense a broker does — but the pool does hold deposited assets under the rules published on this site and in the source.
Using the protocol means transacting with those contracts directly from your own wallet. Every action requires your signature, and no action can be taken on your behalf without it.
002 / NOT ADVICE
Nothing on this site is investment, financial, legal or tax advice, and no figure shown here is a forecast. The calculator, the health factor and the quoted rates describe the current state of a system, not a recommendation to use it.
003 / THE CONTRACTS ARE NOT AUDITED
As of the date above, no third-party security audit has been completed. The source is published and the parameters are stated in full, and neither of those is an audit. A defect in the contracts could result in the total loss of deposited collateral or of supplied pUSD.
004 / WHAT A BORROWER TAKES ON
Collateral is a prediction-market outcome token, which settles at exactly $0 or $1 on a known date. A loan is capped at half the collateral's value at the moment it is drawn, and becomes liquidatable when debt reaches 70% of that value. Liquidation is partial by default and full below a health factor of 0.9.
In the seven days before a market resolves the threshold ramps down, so a loan left open into resolution will be closed against you rather than allowed to ride the outcome. If the market resolves while the loan is open, the position is redeemed and the proceeds repay the debt; any surplus returns to you.
Interest accrues every second the loan is open and stops when it is repaid. The rate moves with how much of the pool is lent out and is not fixed at the moment you borrow.
005 / WHAT A LENDER TAKES ON
Supplying pUSD buys a share of one pool that lends against many positions. If a collateral position becomes worthless faster than the loan against it can be closed, the shortfall is borne by the pool — that is, by the lenders in it. This is the ordinary failure mode of lending against a binary outcome, not an edge case.
Withdrawal requires the pool to hold free liquidity. Funds currently lent out cannot be withdrawn until they are repaid, and there is no mechanism that forces an early repayment for the convenience of a withdrawal.
006 / THE PRICE FEED IS OURS
Collateral is priced by an oracle the protocol itself operates, from Polymarket's order book. New loans are sized off the lower of the best bid and a trailing minimum; liquidation reads the latest price. A dishonest or broken operator could therefore publish a price that liquidates a healthy loan, and no part of the system prevents that cryptographically.
What the design does instead is remove the profit: liquidation pays its caller nothing, and seized collateral goes to the protocol's treasury rather than to whoever triggered it. Moving anything out of that treasury is delayed by a timelock. This is a stated trust assumption, published in the project's decision records, and it is bounded by the deposit cap in force.
007 / PARAMETERS CAN CHANGE
Risk parameters are set per market on chain. Changes that tighten against a live loan — a lower threshold, a longer early-close window, an earlier resolution date — are announced and delayed by a timelock before they take effect. Changes that can only help an existing borrower apply immediately.
A market can also stop being accepted as collateral, which prevents new loans against it without affecting one already open.
008 / NO WARRANTY
The software is provided as it is, without warranty of any kind, and without a promise that it will be available, correct or uninterrupted. To the extent the law allows, no liability is accepted for any loss arising from its use — including loss caused by a defect in the contracts, by a price the oracle published, by a chain outage or reorganisation, or by a third-party service this product depends on.
Nothing in this clause limits a liability that cannot lawfully be limited.
009 / WHO IS BEHIND IT, AND UNDER WHOSE LAW
The operating entity and the governing law for these terms are not published yet. Rather than name a placeholder, this page states the gap: until it is filled, treat these terms as a description of how the software behaves and of the risks it carries, and not as a completed contract with an identified counterparty.
010 / CHANGES
These terms change when the protocol does, and the date above is the date of the last change. Continuing to use the protocol after a change means the version on this page is the one that applies.