Compliance responsibility boundary

This boundary must never be assumed to be handled by a mechanism that doesn’t exist.

What Compliance Adapters do

• Point-in-time checks at specific protocol actions:
  • Loan origination
  • Position transfer (for TransferablePosition markets)
• Enforce whatever eligibility rule already exists at the asset / issuer level

What they do not do

• Continuous monitoring of real-world eligibility mid-loan
• Poll for sanctions designations or revoked KYC after origination
• Define who qualifies as an eligible investor, permitted jurisdictions, or KYC/AML standards

Mid-loan eligibility changes

If a participant’s status changes mid-loan, OpenAsset Market does not poll for this. Enforcement happens through the underlying token issuer’s own freeze mechanism (e.g. capabilities required by ERC-3643), acting on the token outside OpenAsset Market contracts.

Product implication

This boundary must appear in user-facing documentation (this site), not only internal specs, so LPs and borrowers understand ongoing enforcement limits.