There are still misconceptions of how isolation is intended to work. Isolation limits risks to a single market, but isolated markets ≠ isolated systems. Let’s look at a simplified example. Picture this: 2 “high-yield” vaults and 2 “prime” vaults are allocated across several isolated markets. Now imagine the collateral in Market C depegs. Both high-yield vaults have exposure to this market and could be affected. The prime vaults, however, would have ZERO exposure and remain completely isolated. Morpho’s design enables curators to precisely select exposure and tailor any risk profile (from ultra-conservative to completely degen) with greater granularity and efficiency than any other platform. As a result, Morpho may host some of the riskiest vaults in DeFi, but it also offers the safest. The “Prime” vaults on Morpho are among the lowest-risk (though not risk-free, again there's no free lunch in finance) lending exposures in DeFi. @SteakhouseFi and @gauntlet_xyz Prime vaults on Ethereum, for example, are exposed to only 3 assets: cbBTC, WBTC, and wstETH. That’s it! Understanding exactly which markets you are exposed to is critical. You can see the exact allocations of any Morpho Vault directly on the Morpho App btw: That said, with any model, there are always opportunities for improvement. In this case, it’s about better surfacing risks and making them easier to understand. We recognize this and have already taken steps, such as collaborating with @CredoraNetwork to offer risk ratings on vaults, and will continue to do so.