# How do we know the treasury wont go to zero?

There are many ways to mitigate risk when it comes to trading, flipping, or lending NFTs.

At the end of the day, no trader or investor is perfect, but there are 3 main things we look at before providing capital to a collection

* Secondary market volume (is there demand for this project? are they building? do they have enough volume and buyers to ensure the FP will rise, and not result in loans going underwater/defaulting?)
* Historical data / technical analysis (is the project at a new all time high? probably not safe to put up collateral, as the project could retrace and result in the loan going underwater. is the project at a healthy enough retrace, to where there is potential upside based on TA that it could rise in value, meaning borrowers could potentially pay off their loans early and or we stay in the green when it comes to loan amount vs floor price)
* Market sentiment (is SOL pumping? when that happens usually floors plummet, so may not make sense to lend out a good chunk of the treasury if the market is all over the place. is sol dumping? same answer applies)

Regardless, here some examples of loans we have provided on Sharky.fi

{% embed url="<https://docs.google.com/spreadsheets/d/1kj9E2r7mxiH80WJ6-O114NG5Jaa4O6xHPc_8zXfc5VY/edit?usp=sharing>" %}

Sharky themselves have also noted that the default rate hangs around 7% which is not too bad.

![](/files/JDJq5dJ5eIsZxuGbpbMc)

Sharky also has their own [Dune dashboard](https://dune.com/sharkyfi/sharky-growth), which gives us a good idea of overall daily active users, TVL, and more.

Staying on top of these stats and moving with the market will give us a competitive edge when it comes to other lenders, and we will have a bigger market share and reap the benefits within our community.

![](/files/bgvgZOFMCO6deqWVBETK)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://revheads.gitbook.io/zoomies/faq/how-do-we-know-the-treasury-wont-go-to-zero.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.