Raffaello's methodology is designed to make vault strategies explainable, comparable, and reviewable. Each vault follows a structured process from asset definition to portfolio construction, risk monitoring, and disclosure.
Four-Step Framework
A repeatable practice applied to every vault — from initial mandate through ongoing stewardship.
01
Every vault begins with an underlying asset. We assess the issuer and manager, the regulatory framework the asset sits under, the source and durability of its return, its historical behaviour including its weakest periods, and how the exposure is represented on-chain.
02
Relevant assets are mapped to the vault strategy based on exposure, liquidity, availability, and risk characteristics. The goal is to identify assets that represent the strategy in a clear and measurable way.
03
Assets are selected and weighted according to the vault's role, risk profile, and methodology. A vault may hold a single asset at full weight where that best expresses its strategy.
04
Vaults are monitored through relevant risk indicators, portfolio changes, market conditions, and operational events. Methodology updates, NAV records, reserve proofs, reports, and audit materials are disclosed in a structured format where available.
Risk is part of vault design. Raffaello vaults may use indicators such as volatility, drawdown, liquidity conditions, asset-level movement, market stress, and exceptional events to support monitoring and review.
For credit-based vaults, monitoring also covers the three drivers of return: coupon income, interest rate movement, and credit spread movement.
Risk frameworks are designed to create discipline. They do not eliminate risk.
Rebalancing is not simply buying or selling. It is a process of restoring alignment between a vault's current portfolio and its intended strategy.
Depending on the vault, rebalancing may be time-based, event-driven, risk-triggered, or curator-reviewed. The purpose is to maintain strategy discipline as markets move.
Where a vault holds a single asset at full weight, there is no allocation to drift and no discretionary rebalancing by Raffaello. pRNH Vault operates on this basis. Portfolio decisions inside the underlying fund remain with the fund manager.
See how Asset Definition, Asset Mapping, Portfolio Construction, and Monitoring play out in each Raffaello vault.