# Tier System

The combined Gate 3 + Gate 4 score (0–100) plus Gate 5 bonus determines tier placement. Each tier carries a maximum allocation limit to ensure diversification and manage risk.

## Originator Tiers

<table><thead><tr><th>Tier</th><th>Score</th><th>Description</th><th data-hidden>Max Allocation</th></tr></thead><tbody><tr><td><strong>Tier 1</strong></td><td>80–100</td><td>Exemplary regenerative. Structurally transformative with verified impact.</td><td>Up to 30%</td></tr><tr><td><strong>Tier 2</strong></td><td>60–79</td><td>High-quality impact. Sustainable DeFi or above with strong scores.</td><td>Up to 20%</td></tr><tr><td><strong>Tier 3</strong></td><td>40–59</td><td>Watchlist / conditional. Passes gates but with improvement path needed.</td><td>Up to 10%</td></tr><tr><td><strong>Below 40</strong></td><td>—</td><td>Fails Gate 1, Gate 2, or scores below 40. Not included.</td><td>Not eligible</td></tr></tbody></table>

No single originator or protocol may exceed its tier's maximum allocation, regardless of score. This is a structural diversification rule, not a performance penalty.

## Current Originator: Quipu

Quipu is the first curated originator in the USDREFI basket:

* **Score:** 45/100 (Tier 3 — Sustainable DeFi classification)
* **Bennett Average:** 1.83 (clears the 1.5 minimum bar)
* **Profile:** Colombian AI-powered microcredit, 80,000+ alternative data points, 49,400 loans disbursed

## Diversification by Design

The allocation cap system ensures that USDREFI never becomes over-exposed to a single originator. As new originators pass through the framework and are added to the basket, concentration risk decreases naturally. The framework incentivizes seeking higher-scoring originators that unlock larger allocation caps.