Diversified index
Supports a $3,500,000 line. The $2,000,000 draw is 57 percent of it.
Within limits
- Collateral after the drop
- $4,250,000
- Call rate
- 70%
- Lending value
- $2,975,000
- Headroom before a call
- $975,000
ORIGINS OF THE RESEARCH
May 4, 2025 · 1:27 PM
Origins of the research
Some stars shine long before anyone looks up.
THE RECORD
PROVISIONAL PATENT
April 14, 2026
Provisional Patent Filed
TRADEMARKS FILED
April 28, 2026
MACH11™ and Dhruv Intelligence™ Intent-to-Use Trademark Applications Filed (USPTO)
Pending, not registered
KAIROS STUDY
June 1, 2026
KAIROS Longitudinal Study Launched
OSF Pre-Registered
SOC AUDIT ENGAGED
August 13, 2026
SOC 1 and SOC 2 Type 1 Audit Engaged
Thoropass
In progress
TRADEMARKS PUBLISHED
September 29, 2026
MACH11™ and Dhruv Intelligence™ Trademark Applications Published for Opposition
USPTO Official Gazette
Pending, not registered
RESEARCH STUDY
October 31, 2026
Research study
Working paper in progress
The KAIROS study's observation window closes. The study ends on that date. The product does not.
DHRUV
INTELLIGENCE
The fixed point.
Every statement recomputed. Every charge checked to the cent. The distance to a maintenance call, estimated every trading day between statements. Built from inside a live facility, one day at a time, since June 1, 2026.
Dhruv Intelligence is the product. MACH11 is the engine inside it. KAIROS is our live research study, pre-registered on the Open Science Framework and observed every trading day since June 1, 2026.
The fixed point when everything moves.
“Credit is the most important part of the economy—and probably the least understood. It's the biggest and most volatile part.”
A securities-backed line of credit is that credit, secured by a portfolio that is repriced every trading day.
Buy, borrow, die. It is the oldest strategy in wealth management. Hold appreciating assets, borrow against them instead of selling, let the tax basis reset.
The strategy has three legs. Buy and Die are patient. Borrow is not, and Borrow is the leg Dhruv Intelligence watches. Your rate can change without notice. Your collateral is repriced every day. Your terms can be revised at the bank's discretion, and you will not see any of it move until it already has.
In 2026 that leg failed three times, at three levels of sophistication. In South Korea, more than 1.2 million retail accounts hit margin calls in a matter of weeks, and an estimated 320,000 to 360,000 were liquidated by their brokers (Goldman Sachs data, July 2026). Private credit investors learned that redemptions can be limited when too many people ask for their money at once. And a hedge fund with the best prime brokers on Wall Street was forced into a full unwind in days. Different borrowers. Same mechanism. The terms moved faster than the people holding them.
“We manage it client by client,” said JPMorgan Chase CEO Jamie Dimon, describing how banks raise collateral requirements as volatility rises.
THE STUDY
$138 Billion
against an estimated $5 trillion in eligible collateral
In August 2024, the Federal Reserve published its first-ever attempt to size the SBLOC market — an estimated $138 billion in outstanding SBLOC loans as of Q1 2024, against an estimated $5 trillion in eligible collateral, roughly 2.7% of all U.S. consumer credit. But here is what that number reveals: no dedicated data source for this market exists. These loans are folded into the Fed's Consumer Credit release without being broken out. They are not reported to credit bureaus. To produce even an estimate, Fed economists had to reconstruct the figure from four separate, indirect bank-sector datasets spanning 2011 to 2024. A market this large — and the central bank itself cannot measure it directly. If the Fed cannot see this market clearly, neither can the principals borrowing within it. That is the gap KAIROS exists to close.
Outstanding balances: Federal Reserve FEDS Note, August 2024. Eligible collateral is an estimated addressable figure.
KAIROS is a longitudinal, single-subject study of a live securities-backed line of credit, observed from the principal's seat. It is pre-registered on the Open Science Framework. Every trading day since June 1, 2026, it has recorded what the lender printed: collateral value, loan-to-value, daily accrual, and the distance to a maintenance call, through real draws and real returns. Not a survey. Not a simulation. Not a backtest. One facility, watched every day, with the expected figures written down before the statement arrived.
One facility is the point. No aggregate dataset of this market exists, which is why the Fed had to reconstruct its estimate from four indirect sources. The only way to learn how these facilities actually behave is to sit inside one and write everything down. That record is the foundation of the MACH11 engine, and it is why the gauge below shows what it shows.
KAIROS · Principal facility view
Facility status
Principal LOC · Sample
This is what KAIROS shows a principal.
Illustrative example. Educational only.
The study's observation window closes October 31, 2026. The product does not. KAIROS is the research. Dhruv Intelligence is what it built.
Review the pre-registration on OSF →WHAT WE FOUND
Those eighteen changes appear on the monthly billing statement, itemised to six decimal places. None of them appeared as a notification, an alert, or a message. The only way to see them is to open an eight-page document after the month has already closed.
One of those changes was applied backwards. A rate for a day inside a month that had already closed, been billed and been paid was revised afterwards, and the difference was collected on the following month's statement. It is disclosed there, in a single line, at the back.
A second adjustment carries no line at all. It is absent from the account screens, absent from the complete transaction history, and unlabelled on the statement. It was recoverable only by rebuilding all eighteen interest calculations by hand.
Neither amount was material. That is the point. If figures this small can move without appearing anywhere a borrower can see them, the question is what else moves the same way. Nobody is checking.
THE ENGINE
SettledAugust 31, 2026
MACH11 recomputes every interest leg from the lender's own itemised index resets and the balance ledger, then checks the result against what the lender printed. Nothing is trusted. Everything is traced. When the figures match, you hold a dated record that they were checked. When they do not, you hold the leg, the page, and the difference, to the cent.
The record above is from the facility in the study, August 2026. Every principal on the platform gets the same record, every month.
The same engine, pointed at what happens next.
Same drop. Three portfolios. The difference is what the lender counts and when it changes its mind.
Supports a $3,500,000 line. The $2,000,000 draw is 57 percent of it.
Within limits
Supports a $3,250,000 line. The $2,000,000 draw is 62 percent of it.
Within limits
Supports a $2,500,000 line. The $2,000,000 draw is 80 percent of it.
Maintenance call · shortfall
The advance rate sets the size of the line. The call rate sets when it breaks. For most facilities they move together.
The middle and right columns show what most calculators leave out. Lenders assign lower advance rates to concentrated and volatile positions to begin with, and commonly reduce them further when volatility rises. The size and timing of those reductions are at the lender's discretion and are not published. The rates shown are illustrative. The mechanism is not.
The concentrated column assumes the single name falls twice as far as the market. Since 2014, the average stock in the Russell 1000 has suffered a maximum decline of 50 percent. The index’s worst fall was 25 percent.
Source: Morgan Stanley Wealth Management · Is Your Portfolio Too Concentrated?
Cover is not the amount you borrowed. The lender's claim is the drawn balance. Selling stock to pay down the line shrinks the collateral at the same time it shrinks the loan, so each dollar sold closes only thirty cents of a shortfall at a 70% maintenance rate. To close a shortfall, more stock must be sold than the shortfall itself. That ratio is the forced-sale multiple: one divided by one minus the maintenance rate.
The multiple does not care how large the portfolio is. It is the same at four hundred thousand and at forty million.
At a seventy percent maintenance rate, every dollar of shortfall requires three dollars and thirty-three cents of stock sold. If the required sale is larger than the portfolio that remains, the figure reads more than you have. That case is correct. It means the sale cannot restore the line from what is left.
The premise
Every discount rate starts with an equity risk premium. The most widely used estimate in practice comes from Aswath Damodaran, professor of finance at NYU Stern. He has published it annually since 2008, refreshes it monthly, and gives it away.
His 2026 reading was specific. The price of risk was normal. Stocks looked expensive on most conventional measures, but investors were being paid roughly what they have historically been paid to hold them. What he flagged instead was that the market seemed too sanguine about catastrophic risk.
That gap is the whole problem. Ordinary volatility is in the price. The tail is not. And if your portfolio is pledged against a line of credit, the tail is the only part that matters.
Further reading
Dhruv Intelligence is not affiliated with or endorsed by Professor Damodaran or NYU Stern. Links go to his published work.
WHAT WE DO
Every monthly statement recomputed and checked against the lender's own figures, with an estimated daily cushion carried between statements. The risk inside a securities-backed line is never invisible to the person carrying it.
Each facility verified adds to a document-level account of what these lines actually charge, how they actually reprice, and how quickly they recognize a drawdown. The Federal Reserve estimated this market from four indirect sources. This is the direct one.
For self-directed investors, Monk Mode is free, educational, and separate. The forced-sale multiple is the same at four hundred thousand and at forty million.
Your collateral is not always worth what your facility says it is. Recognition delays, haircuts, and reclassifications create a gap between what you own and what your lender counts. This is not a rumor. FINRA — the industry regulator — states that if a collateral call is triggered, lenders often can make these decisions without giving you any notice. In practice a lender will typically give a short window to post additional collateral or pay the line down before anything is sold. The right to sell straight away, without contacting you, is written into the agreement, and it is the right that gets used when markets move quickly. Every major SBLOC lender discloses the same language in their own terms. We verify the gap from each monthly statement and carry an estimated daily cushion in between, so it is never invisible to you.The bottom line: the bank recalculates your downside risk instantly, but delays updating your real asset values. You are trading on stale latency data; they aren't.
Source: FINRA · Securities-Backed Lines of Credit (Investor Insights)
Interest on your facility accrues every single day. Most principals never see it until the monthly statement arrives — and by then, small anomalies have compounded into real money. SBLOCs are demand loans with variable interest rates. There is no requirement that the daily accrual be shown to you in real time, and no central source reports it. We recompute every itemised reset from the monthly statement. Between statements the cushion is an estimate, marked to public prices. We do not observe the bank's own daily figure.The bottom line: variable rates compound in the dark. Your institution's statements reflect historical monthly closes; the margin call triggers in real time mid-month.
Your advisor manages your portfolio. Your facility is a separate system — separate incentives, separate risk triggers, separate behavior. No existing platform connects the two. The SEC states it directly: all broker-dealers, investment advisers, and financial professionals have at least some conflicts of interest with their retail investors — an economic incentive to recommend products that provide more revenue for the firm, even if not in the best interest of the investor. That is not an accusation. It is the regulator's own language. Dhruv Intelligence sits on your side of the table — the only side with no conflict.The bottom line: your wealth advisor is incentivized by fee-generating assets under management, not your balance sheet liabilities. They place you in the leverage facility; they do not manage the tail risk.
WHY IT'S DEFENSIBLE
A custom, natively built architecture — not a thin wrapper on someone else’s API. The data and the way it is collected are the asset.
Structured, auditable, and production-grade, with data-segregation discipline from day one — built to survive due diligence, not to be retrofitted for it.
Built and exited before. And one month spent doing collateral arithmetic on a spreadsheet while the market fell, because no tool existed. Dhruv Intelligence is that tool.
WHERE THIS GOES
Today each lender sees its own book and nothing else, and the principal sees a statement after the month has closed. As the record grows, the platform becomes the place where those books sit side by side, where lenders compete for lines they can already see, and where the aggregate becomes the early indicator for a channel of financial stress that no regulator, risk desk or index observes today.
That is what MACH11 is built for. It is running.
The thesis behind principal-side intelligence for SBLOC facilities.
Read the Thesis →
KAIROS is the first rigorous single-subject case study of an SBLOC facility from the principal's seat. OSF pre-registered.
Review the Registry [OSF] →
A SOC 1 and SOC 2 Type 1 audit is in progress with Thoropass, engaged August 13, 2026. No report has been issued. Built for institutional-grade compliance from day one.
View Compliance Framework →
The intelligence engine powering both principal and institutional intelligence — informed by KAIROS research. Built for principals, advisors, and family offices.
Institutional inquiries — info@dhruvintelligence.ai →
A securities-backed line of credit is a demand loan against a portfolio. The lender recalculates collateral value, remaining capacity, and proximity to a sale every day. Most borrowers see those numbers only after the call.
A securities-backed line of credit is a demand loan. The lender can require repayment without a scheduled maturity. Cover that looks adequate on a quiet day is not a term. It is a snapshot the lender can revise.
The portfolio you pledged is marked continuously. The value that supports the line is the lender's value, after haircuts and eligibility rules, not the last price on your statement. A gap between those two numbers is ordinary. You are not shown it in real time.
The share of a position the lender will lend against, and the level at which it will call, are not fixed. Either can be tightened as volatility rises, as a name concentrates, or as the book is reclassified. A cut in the maintenance rate raises the trigger without a single share being sold.
Market price and lending value do not have to move one at a time. A decline in the portfolio can arrive with a tighter maintenance rate on the same day. Headroom compresses from both sides. The forced-sale multiple then applies to a larger shortfall.
A book that is heavy in a few names can be assigned a lower advance rate than a diversified book of the same market value. The lender is not required to wait until a name has already fallen. The limit can move first.
The drawn balance is not static. Interest is added daily on a variable rate. Most borrowers see the accrual on a monthly statement. The maintenance test does not wait for that statement.
Once a collateral call is triggered, a lender will typically give a short window to post additional collateral or pay the line down before it sells anything. The right to sell straight away, without contacting you, is written into the agreement, and it is the right that gets used when markets move quickly. A forced sale can complete before a portal updates.
Crossing the maintenance threshold is the event. It is not a courtesy alert. The remedy is pay down, pledge more, or sell. The sale is sized to restore the lender's cover, which is why the multiple exceeds one.
The stock sold to close a shortfall is sold into the same market that produced the shortfall. The sale itself reduces remaining collateral. That is why a shortfall of one dollar is not cured by selling one dollar of stock.
Month-end figures describe a close that has already happened. The call, if it comes, is computed on the live book. Watching the statement is not the same as watching the line.
Your adviser manages the portfolio. The facility is a separate system, with separate incentives and separate triggers. The adviser who placed the line is not paid to monitor the call.
Dhruv Intelligence exists to put the lender's view on your side of the table. KAIROS has watched a live facility since June 2026. The only question that matters before the call comes is the one on the gauge: at what drawdown, at what rate, and at what advance-rate cut the line breaks, and how much cover remains.