This market will resolve to “Yes” if the Morpho protocol suffers a qualifying bad debt event or exploit at any time after the creation of this market and before December 1, 2026 at 00:00 UTC.

Otherwise, this market will resolve to “No.”

For the purposes of this market:

• “Exploit” is defined as a hack, smart contract vulnerability exploit, oracle manipulation, or compromised key attack on any official Morpho deployment resulting in a verifiable loss of $1,000,000 or more in a single incident.

• “Bad debt” is defined as unrecoverable debt on any official Morpho deployed vault that is curated and displayed on their front end, where liquidated or undercollateralized positions leave the protocol with unpaid debt of $1,000,000 or more in a single incident, as confirmed by onchain data.

• Only incidents occurring after market creation are eligible. Incidents that began before market creation do not qualify.

• Losses must be realized and not covered in full by the protocol’s own mechanisms within the same incident (recovery of exploited funds does not negate an exploit that has already occurred).