Introducing Precept, by Templar
You configure the precepts. The protocol enforces them.
Today we launch Precept, by Templar. Precept is live on Stellar. It is lending infrastructure for institutions that configure their own rules. Each market is isolated and has its own rules. The protocol enforces them.
Why Precept
Institutions want on-chain credit. They also need control. They must choose the collateral, borrow asset, loan-to-value (LTV) limit, and price feeds.
On most lending protocols, everyone in a pool shares those choices. One risky asset can affect every lender in that pool.
On Precept, each market has its own rules. One market's risk does not affect another. Precept is designed with the long term goal of being configurably compliant.
Three things to know
Each market is configured with its own set of precepts. A precept is a rule of conduct between counterparties. A market's precepts set its collateral, borrow asset, LTV limit, and oracle set.
Configurable. Auditable. Enforceable. Each market's precepts sit on-chain, where anyone can read them. The protocol enforces them on every position.
Built for curators and institutions. Curators run their own markets and vaults from day one, starting with Gami.
Why the name
A precept is a rule of conduct. The word comes from the Latin praeceptum, "a rule" or "an order." A precept is an instruction given in advance.
The name also comes from Templar history. The Knights Templar ran a network of local houses. In England, these houses were called preceptories. Each one had its own head, the preceptor, who managed its land and money. Every house followed the same Rule of the Order.
Precept follows the same model. Each market is its own house, with its own precepts and its own balances. One protocol enforces those precepts in every market.
Templar is the order. Precept is the rule it enforces.
Launch markets
Precept starts with three markets on Stellar:
Each market's precepts are listed here: precept.templarfi.org/advanced/precepts.
Launch partners
Gami joins Precept as a launch partner and curator, bringing institutional-grade risk expertise to Stellar: "As a curator on Precept, Gami sets the risk parameters and administers the price oracle of its markets. Each market isolates its own risk and keeps its terms on-chain, providing a high transparency level to participants." - Gami Labs
DeFindex plans to allocate stablecoin vault liquidity to Precept: "DeFindex vaults give neobanks, wallets and apps access to stablecoin yield on Stellar. Precept gives those DeFindex vaults isolated markets to allocate to, each with its collateral, limits, and price feeds on-chain. We plan to bring stablecoin liquidity to Precept." - Esteban Iglesias, Co-founder of DeFindex
Re7 will be a curator on Precept markets: "As curators we monitor and assess each lending market individually, and to make this easier and more transparent Precept isolates each market and puts its collateral, limits, and price feeds on-chain, where we can inspect them. We look forward to working with Templar as Precept grows on Stellar!" - Chris Taylor, COO of Re7
Security
Audits and testing
Audit. Guardian completed an independent audit of the Precept contracts. Prior independent audits include Certora and Code4rena. The Guardian audit found no Critical, High, or Medium findings. It found 5 Low and 10 Informational findings. 14 are resolved. 1 Low finding is acknowledged. Full report: report.
Formal verification. All 7 safety invariants are backed by machine-checked proof, and a fuzzing suite is added. Each proof has a stated scope and assumptions: VERIFICATION.md.
Bug bounty. Guardian runs the Precept bug bounty program with $100k max payout. Report a bug: https://x.com/GuardianAudits/status/2114756453626266009
Oracle protection
Redundant price feeds. Precept reads prices from a proxy oracle aggregator, not from one source. Each feed can include multiple independent sources, such as Chainlink, Pyth, and RedStone. The aggregator uses the median, so one bad source cannot move the price outside the range of the others. Halborn audited the aggregator.
Circuit breakers. On-chain circuit breakers block a feed when its price moves past set limits. The aggregator rejects stale prices. An operator can also stop a feed by hand if a price is wrong.
Timelocked changes. Changes to the aggregator go through timelocked governance.
Market controls
No token-based backstop. Some lending protocols hold a first-loss reserve in their own governance token. That token can lose value at the moment the reserve is needed. Precept has no such reserve, so lenders have no exposure to a governance token's price.
Fixed rules after launch. Each market's precepts are set before the market goes live. After that, the market admin cannot change parameters, raise caps, change the oracle, or set fees. The admin can only pause new borrowing, freeze the market, or disable an asset after a 7-day timelock.
Multisig or immutable. After a market goes live, every role that keeps power is held by a multisig. Contracts and markets with no admin are immutable: no key can change them.
Market rules on-chain. Each market's precepts, including its oracle set, are on-chain and in the docs: Official markets.
Monitoring and response
Hypernative monitoring. Hypernative watches every Precept market for exploit signals, oracle staleness and divergence, reserve health, and admin actions. Alerts go to Templar's on-call team and to the market's curator.
Liquidator coverage. Professional liquidators serve every market. An alert fires if any collateral asset has fewer than two active liquidators.
Risk dashboard and analytics API. The risk dashboard at http://data.precept.templarfi.org/ shows each market's utilization, positions, and liquidations. Curators get an API key at onboarding for the analytics API at api.templarfi.org.
Building on Stellar
"The Stellar network is home to over $4B in real world assets onchain. Precept turns those RWAs into active collateral and gives holders more ways to borrow. Each market sets its own rules, and the protocol enforces them. Precept’s design goal of configurable compliance is a great fit for our ecosystem of institutions, curators, and investment strategists. We’re excited to support the utility and growth of onchain finance at scale."
– Ada Vaughan, Head of DeFi, Stellar Development Foundation
A word from the founder
"Templar exists to unlock borrowing against any asset. Some assets carry compliance requirements, and the institutions that hold them must set their own terms. Precept gives them that control, with every rule on-chain where anyone can check it. We're building Precept on Stellar because Stellar has built, and keeps building, for institutional use cases. It already hosts a wide range of real-world assets."
– Royal, Founder, Templar Protocol
Risks
Lending has risk. Read this section before you deposit.
Precept has no lender insurance yet. If a borrower's collateral does not cover a loan after liquidation, lenders in that market can lose money.
Each market is isolated. A loss stays in that market. It does not spread to other markets.
Each market depends on its oracle set and on liquidators. A wrong price or a late liquidation can cause losses.
An audit lowers smart contract risk. It does not remove it.
Read the risk disclosures: Risks.
What's next
More markets and curators.
Precept v1.0. Target: Q2 2027. Planned items:
Permissionless markets. A registry lets anyone create a market for a USDC listing fee. The Precept app lists only approved markets.
Optional no-rehypothecation. A market can keep its collateral out of lending, so collateral is never lent out.
Compliance hooks. Each market and curated vault can use a compliance provider: Predicate, an issuer-run contract, or a ZK eligibility proof for KYC, investor class, or jurisdiction. A market can also limit liquidations to approved liquidators.
Issuer controls and asset integrity. The issuer signs the asset metadata at listing and names the asset controller. Lenders can see who can freeze or recover an asset. Issuers publish ongoing NAV, custody, and authenticity attestations.
New products. Permissioned curated vaults, fixed-duration loans, PT/YT support, and confidential token deposits and withdrawals.
Risk controls and monitoring. Per-function pause, per-account freeze, withdrawal rate limits, and a withdrawal queue.
Precept will soon have its own X account. When it launches, follow it for market launches, parameters, audits, and docs. Templar news stays on @TemplarProtocol and in Telegram at t.me/templarprotocol.
Get started
Docs: docs.precept.templarfi.org
Risk disclosures: Risks
Audit: report
Official Precept links appear only on templarfi.org, on @TemplarProtocol, on Precept Protocol, and on precept.templarfi.org.
The Templar team never DMs you first.