Continuing from the previous article, commenters in the discussion mentioned that Huma Finance (@Huma Finance 🟣 ) promotes the slogan "Spend tomorrow's money today." Doesn't that make it easy to commit fraud?
In fact, Huma has a core weapon—the "Cash Flow CT Machine" intelligent contract system: Do you think that the receipts you upload only consider the deposit numbers you submit?
No! Through machine learning and training on massive historical cash flow samples, it can accurately identify the risk differences of various types of income.
For example: If you are a civil servant, with stable salary and low default rate, the discount rate could be as high as 90%; if you are from a construction company with project-based income that fluctuates greatly, the system will dynamically adjust the discount rate based on factors like project performance, ranging from 70% to 80%.
Regarding those who want to commit fraud to borrow money, Huma Finance's strategy is a multi-layered, deep defense system.
1. Prevention Beforehand
It will integrate and verify data with trusted third-party sources through APIs. For instance, if you are a freelancer, it might connect to platforms like Upwork and Fiverr to verify your historical order records and income flow.
Risk pricing engine. It will evaluate your credibility; it will assess the credibility of the payer, whether it's a large company like Apple or Xiaomi or a newly established small company.
2. Monitoring During
On-chain identity and reputation system. Credit records accumulate, and once a default occurs, especially if deemed fraudulent, that wallet address will be permanently marked within the Huma protocol. This "stain" is public, transparent, and immutable.
3. Post-Event Handling
If someone really breaks through the previous two defenses and successfully borrows funds but defaults, this intelligent contract will mark the loan as "defaulted."
Collateral (if any) will be automatically liquidated to compensate the lender's losses.
Legal measures will be taken for recourse. For some "permissioned" funds pools that require KYC (Know Your Customer) identity verification, the borrower's real identity off-chain is known. If fraudulent violations occur, legal measures can be used for recovery.
For someone trying to use fraudulent data to deceive Huma Finance into obtaining a loan, they will face a "high cost, low return, high risk" dilemma. This is precisely the strong and resilient risk control system that Huma Finance and other RWA protocols are committed to building.