(Bloomberg) -- Decentralized finance app Maple Finance has introduced tougher requirements for borrowers on its platform, moving to reduce counterparty risk after a wave of defaults swept the crypto industry this year. 

Borrowers must now sign legal agreements that include a provision for submitting independently audited financial accounts annually, Chief Executive Officer Sid Powell said in an interview. The also have to submit monthly reports outlining their financial health, including balance sheet information. 

Maple Finance, whose app connects institutional lenders and borrowers, has suffered along with the wider DeFi market as crypto prices crashed. The total value locked on its platform has dropped to $22.5 million from $153 million at the end of June. 

Its tightening of standards highlights the unease that persists in crypto markets months after hedge fund Three Arrows Capital collapsed, setting off a chain of defaults that brought down digital-asset lenders like Celsius Network. 

Borrowers on Maple Finance will also be required to sign up to credit risk data platform Credora, which provides lenders with real-time information to help them assess what level of risk a borrower has accumulated across different crypto exchanges. 

“This type of view would have been powerful for the centralized lenders who had exposures to 3AC,” said Powell, using the acronym for Three Arrows Capital.

Read more: DeFi App Maple Finance Warns of ‘Insufficient Cash’ (1)

Powell said Maple Finance has recorded a single $10 million default out of $1.8 billion of loans originated on is platform, and that it didn’t facilitate any loans to 3AC. “But the increased reporting requirements enhance the ability to monitor borrower health in a volatile market,” he said.

Maple Finance’s clients include Genesis Trading, Alameda Research and Wintermute, which recently repaid a loan on the platform following a hack that saw $160 million stolen from its DeFi unit. 

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