Compliance & Monitoring

Birch Hill provides institutional-grade compliance infrastructure and real-time monitoring designed to meet regulatory requirements for qualified custodians and institutional allocators. Our systems integrate directly with industry-leading security and compliance partners to ensure all capital flows remain within client-mandated risk tolerances.

Real-Time Monitoring

Birch Hill delivers sub-second monitoring of collateral values and oracle health through the Benchmark UI. Our monitoring infrastructure tracks:

• Collateral Health: Continuous assessment of collateral values across all active positions

• Oracle Integrity: Real-time validation of price feed accuracy and latency

• Utilization Rates: Live tracking of pool utilization to identify liquidity constraints

• Position Risk Metrics: Automated calculation of liquidation proximity and margin buffers

Dual-Layer Liquidation

Our liquidation infrastructure combines market maker partnerships with proprietary automation:

• Market Maker Partners: Integrations with JST and Flowdesk provide professional liquidation execution with guaranteed service levels

• Proprietary Liquidation Bots: Automated systems ensure positions breaching pre-set LTV thresholds are liquidated immediately, independent of third-party availability

• Cascading Safeguards: Multi-tier liquidation triggers prevent single points of failure during high-volatility events

Sanctions Screening

Birch Hill integrates with TRM Labs and Hypernative to ensure no sanctioned or "toxic" liquidity enters our vaults:

• OFAC SDN List Screening: Real-time verification against U.S. Treasury sanctions

• UN Security Council Sanctions: Global sanctions compliance

• EU Financial Sanctions: European regulatory compliance

• Known Exploit Addresses: Screening against databases of compromised wallets and protocol exploits

Screening Checkpoints:

Checkpoint	Frequency	Scope
Market Onboarding	Pre-investment	All contract addresses
Capital Allocation	Per-transaction	Verification before execution
Active Monitoring	Daily	All borrower addresses
Rebalancing	Monthly	Comprehensive re-screening

Pre-Trade Compliance Screening

Birch Hill embeds client-specific compliance mandates directly into the allocation engine:

• Custom Risk Tolerances: Client-defined maximum exposure limits by asset, protocol, or chain

• Permitted Venue Lists: Whitelist enforcement for approved protocols and markets

• Concentration Limits: Automated enforcement of diversification requirements

• Regulatory Constraints: Integration of jurisdiction-specific investment restrictions

Institutional-Grade Financial Reporting

Partnerships with Cryptio and CBIZ enable Birch Hill to provide custom financial reporting aligned with regulatory standards:

• NAV Calculations: Daily net asset value reporting with full audit trails

• Tax Lot Accounting: FIFO, LIFO, and specific identification methods

• Regulatory Filings: Documentation formatted for SEC, CFTC, and international regulators

• Custom Reports: Client-specific reporting templates for internal compliance and board presentations

Vault Risk Dashboard

The Birch Hill Vault Risk Dashboard provides real-time visibility into portfolio performance and risk metrics:

• Total Assets Under Management: Aggregate view across all vault deployments

• Assets Deployed vs. Cash: Real-time breakdown of active allocations

• Historic APY: Performance tracking with benchmark comparisons

• Current Allocation: Vault-level breakdown by chain, market count, and utilization

• Asset Exposure: Visual representation of portfolio concentration