Stress Proof

Risk & Proof — Step 4 of 4

Observed behavior during a defined stress window, derived from executed on-chain transfers and protocol accounting.

This section documents observed on-chain behavior of AlphaPing CORE vaults during a defined market stress period in Q4 2025. The objective is to provide verifiable evidence of liquidity flows, utilization behavior, and vault-level accounting outcomes under stressed market conditions.

All observations are derived from executed on-chain transactions and protocol-defined accounting behavior. This material is evidentiary in nature and does not constitute forecasts, guarantees, or representations regarding future performance or behavior.

The scope of this analysis is limited to the specified stress window and the vaults explicitly referenced. Findings should be interpreted in conjunction with the AlphaPing Risk Framework and Accounting & Loss Treatment sections.

Documented Stress Window

The stress analysis covers a defined period of elevated market volatility and withdrawal activity and applies only to the vaults and network specified below. All observations in subsequent sections are scoped to this window.

Parameter	Value
Period Analyzed	1–8 November 2025 (UTC)
Network	Ethereum Mainnet
Vault Scope	AlphaPing CORE vaults
Vaults Included	ALPHA USDC Core, ALPHA WETH Core
Analysis Status	Observational (on-chain executed data only)
Last Updated	14 January 2026

Source Reference

This section is based on the AlphaPing — Stress Proof Appendix (Q4 2025) and reflects the documented scope therein.

Methodology

All figures and observations in this analysis are derived exclusively from executed on-chain transactions and protocol-defined accounting behavior during the documented stress window.

The methodology is designed to reflect actual realized behavior, not modeled, normalized, or performance-adjusted outcomes. No off-chain data sources, discretionary assumptions, or internal accounting estimates are applied.

Data Sources

ERC-20 Transfer events of underlying assets
Public Ethereum Mainnet transaction data
Protocol-defined vault accounting behavior

Included Activity

Transfers of underlying assets between external addresses and vault contracts
Classification of flows as:
Deposits (external address → vault)
Withdrawals (vault → external address)
Token-denominated values for USDC
Transfer-level USD normalization where applicable for WETH

Explicit Exclusions

Share-token mint and burn activity
Internal vault accounting estimates
Modeled utilization or liquidity metrics
Off-chain pricing feeds or discretionary adjustments
Performance normalization or smoothing

Reproducibility

All results are independently reproducible using public Ethereum block explorers and the contract addresses specified in the appendix.

Observed Liquidity Flows

During the documented stress window, AlphaPing CORE vaults processed large, sustained liquidity flows. The figures below reflect cumulative executed transfers of underlying assets and represent actual on-chain activity rather than point-in-time balances.

Vault	Gross Withdrawals	Gross Deposits	Net Flow
ALPHA USDC Core	~USD 167.8M	~USD 167.9M	~+USD 0.1M
ALPHA WETH Core	~USD 49.7M	~USD 49.7M	~Flat
Total	~USD 217.5M	~USD 217.6M	~Flat

Flow Interpretation Notes

Gross withdrawals represent cumulative outbound transfers over the period
Gross deposits represent cumulative inbound transfers over the period
Net flow reflects inbound minus outbound transfers
Minor discrepancies reflect rounding and transfer-level USD normalization

Gross flow volumes may materially exceed end-period TVL without implying leverage, loss, or accounting impairment.

Etherscan References

The figures above are derived from ERC-20 transfer events for the following contracts:

Vault Contracts

ALPHA USDC Core Vault
https://etherscan.io/address/0xb0f05E4De970A1aaf77f8C2F823953a367504BA9
ALPHA WETH Core Vault
https://etherscan.io/address/0x47fe8Ab9eE47DD65c24df52324181790b9F47EfC

Underlying Assets

USDC
https://etherscan.io/address/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
WETH
https://etherscan.io/address/0xC02aaA39b223FE8D0A0E5C4F27eAD9083C756C2

Block range analyzed: 23700766 – 23757981 (Ethereum Mainnet).

Utilization & Liquidity Behavior

During the documented stress window, AlphaPing CORE vaults processed sustained withdrawal demand while remaining operational.

Observed on-chain behavior during this period included:

Withdrawals were honored continuously according to protocol mechanics
No on-chain gating, pause, or withdrawal restriction mechanisms were observed
Vault balances declined to a lower equilibrium while maintaining active flow throughput
Capital continued to enter and exit the vaults throughout the stress window

This behavior is consistent with money-market style liquidity dynamics under conditions of elevated volatility and withdrawal pressure.

Accounting & Loss Outcomes

During the documented stress window, vault-level accounting behavior within AlphaPing CORE vaults followed protocol-defined mechanics under Morpho Vaults v1.1.

No vault-level bad debt was realized during the analyzed period. Accounting outcomes reflected executed protocol behavior and on-chain state without discretionary adjustment, smoothing, or intervention.

Under Morpho Vaults v1.1, losses—if present at the underlying market level—are tracked through protocol-defined mechanisms and are not automatically crystallized at the vault level. Statements in this section refer strictly to vault-level accounting integrity and do not imply the absence of price volatility or losses at the underlying market level.

Operator Actions During Stress

During the documented stress window, AlphaPing operated strictly within predefined mandate constraints and protocol mechanics.

Observed operator behavior included:

Continued honoring of withdrawals according to protocol-defined execution
No introduction of discretionary gating, pauses, or withdrawal restrictions
No injection of external liquidity to influence utilization or outcomes
No modification of accounting behavior or loss treatment
No alteration of mandate parameters outside permitted configuration

AlphaPing did not intervene to delay, prevent, or reorder protocol execution during the stress period.

Allocator-Relevant Observations

Based on executed on-chain activity during the documented stress window, the following observations can be made:

Withdrawal requests were met according to protocol mechanics
Capital was not trapped or gated at the vault level
Liquidity remained available after balances stabilized at a lower equilibrium
Vault-level accounting integrity was preserved throughout the period

No claims of outperformance, guarantees, or future behavior are made. Observations are limited to the documented stress window and recorded on-chain activity.

Limitations & Context

This documentation reflects observed on-chain behavior during a specific stress period and is limited to the scope defined in this section.

Specifically:

The analysis covers the period 1–8 November 2025 only
It applies exclusively to AlphaPing CORE vaults on Ethereum Mainnet
It does not assert the absence of market-level volatility or losses
It does not guarantee future outcomes, liquidity, or accounting behavior
It does not imply that similar conditions will recur or be handled identically

This material should be reviewed in conjunction with the AlphaPing Risk Framework and Accounting & Loss Treatment sections to understand the broader operating model and constraints.

Source & Reproducibility

All figures, observations, and statements in this section are derived from the AlphaPing — Stress Proof Appendix (Q4 2025) and are based exclusively on executed on-chain transactions and protocol-defined accounting behavior.

The appendix includes the full methodology, contract addresses, block ranges, and asset references required to independently reproduce the analysis using public Ethereum block explorers. No internal accounting estimates, off-chain data sources, or discretionary adjustments are used.

Reference Material

AlphaPing — Stress Proof Appendix (Q4 2025)
Version 1.0 — Internal / Allocator Due Diligence
Stress Window: 1–8 November 2025
Network: Ethereum Mainnet
Vault Contracts
ALPHA USDC Core Vault
https://etherscan.io/address/0xb0f05E4De970A1aaf77f8C2F823953a367504BA9
ALPHA WETH Core Vault
https://etherscan.io/address/0x47fe8Ab9eE47DD65c24df52324181790b9F47EfC
Underlying Assets
USDC
https://etherscan.io/address/0xA0b86991c6218b36c1d19D4a2e9Eb0cE3606eB48
WETH
https://etherscan.io/address/0xC02aaA39b223FE8D0A0E5C4F27eAD9083C756C2
Block Range Analyzed
23700766 – 23757981 (Ethereum Mainnet)

All references correspond to public, immutable on-chain data and can be independently verified.