{"id":18937,"date":"2026-05-04T12:45:00","date_gmt":"2026-05-04T12:45:00","guid":{"rendered":"https:\/\/finteqc.ca\/?post_type=finteqc_paper&#038;p=18937"},"modified":"2026-05-04T12:46:07","modified_gmt":"2026-05-04T12:46:07","slug":"15656","status":"publish","type":"finteqc_paper","link":"https:\/\/finteqc.ca\/index.php\/papers\/15656\/","title":{"rendered":"Risk disclosure and consumer protection in non-custodial DeFi lending: A functional policy framework informed by EU MiCA"},"content":{"rendered":"<p>Decentralised finance (DeFi) lending models that operate without custodial intermediaries expose consumers and investors to significant risks that traditional financial disclosure regimes struggle to address. Users interact directly with automated smart contracts, creating a structural mismatch with disclosure frameworks designed for intermediated finance. This paper uses the EU Markets in Crypto-Assets Regulation (MiCA) as a regulatory baseline to identify disclosure gaps arising from decentralised operational structures. It focuses on three core risk vectors in non-custodial DeFi lending: liquidation mechanics, oracle dependence, and governance-driven parameter changes. Building on this analysis, the paper proposes a functional, policy-oriented risk-disclosure framework that attaches obligations to practical control points, including user-facing interfaces, governance structures, and actors influencing key risk parameters, rather than formal legal status. The framework advances a coherent approach to risk-relevant consumer protection in DeFi lending markets.<\/p>\n","protected":false},"featured_media":0,"template":"","class_list":["post-18937","finteqc_paper","type-finteqc_paper","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/finteqc_paper\/18937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/finteqc_paper"}],"about":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/types\/finteqc_paper"}],"wp:attachment":[{"href":"https:\/\/finteqc.ca\/index.php\/wp-json\/wp\/v2\/media?parent=18937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}