Morpho bad debt and stuck markets
Bad debt is a loan whose collateral is worth less than what is owed, so liquidating it cannot make lenders whole. On Morpho a loss stays inside the one market where it happened: lenders in that market share it, and nobody else does. This page lists markets on every network, listed in the Morpho app or not, that carry bad debt or have become stuck.
Data from Morpho's API · updated
Bad debt written off
$7.71M
losses already shared by lenders
Bad debt still open
$300
in markets that aren't stuck
Stuck markets
50
worth tracking, of 283 in total
Listed vaults exposed
0
lending into any market below
None of the vaults listed in the Morpho app currently lend more than $100 into the markets on this page.
Stuck markets
A stuck market has every dollar lent out and borrowers who won't repay, usually because the collateral collapsed. Interest keeps compounding at the maximum rate, so the amounts owed grow by roughly 3,000 times a year on paper. Those paper figures are not real money, so this table shows how much was lent out when the market got stuck instead.
| Market | Lent when stuck | Stuck since |
|---|---|---|
| BONDUSD / USRNot listedEthereum · LLTV 94.5% · Unrecognized collateral | $219.4M | Apr 24, 2025 |
| msY / USDCNot listedEthereum · LLTV 86.0% · Oracle unusable, Little cash to withdraw for a long time | $21.26M | Jun 25, 2026 |
| wstUSR / USDCNot listedEthereum · LLTV 91.5% · Oracle price derivation, Little cash to withdraw for a long time | $6.30M | Apr 9, 2026 |
| AVLT / USD₮0Not listedHyperEVM · LLTV 91.5% · Little cash to withdraw for a long time | $5.67M | Jul 2, 2026 |
| xUSD / USDCNot listedArbitrum · LLTV 91.5% · Custom, Little cash to withdraw for a long time | $5.62M | Nov 6, 2025 |
| AVLT / USDCNot listedEthereum · LLTV 86.0% | $4.49M | Jul 2, 2026 |
| msY / USDCNot listedEthereum · LLTV 91.5% · Oracle unusable, Little cash to withdraw for a long time | $3.88M | Jul 2, 2026 |
| K / USDCNot listedArbitrum · LLTV 62.5% · Unrecognized collateral | $3.29M | Aug 14, 2025 |
| RLP / USDCNot listedEthereum · LLTV 86.0% · Little cash to withdraw for a long time | $2.92M | Apr 2, 2026 |
| sNUSD / USDCNot listedEthereum · LLTV 91.5% | $1.68M | Sep 10, 2026 |
| USR / USDCNot listedBase · LLTV 91.5% · Oracle price derivation | $1.28M | May 7, 2026 |
| RSS / USDCNot listedBase · LLTV 77.0% · Unrecognized collateral | $1.02M | Aug 27, 2026 |
| ILLIQUID_PERPDEX_COLL / USDCNot listedEthereum · LLTV 94.5% · Unrecognized collateral | $742K | Sep 17, 2026 |
| PT-RLP-9APR2026 / USDCNot listedEthereum · LLTV 86.0% | $439K | Apr 9, 2026 |
| RLP / AUSDNot listedEthereum · LLTV 86.0% · Little cash to withdraw for a long time | $319K | Apr 9, 2026 |
| USR / USDCNot listedEthereum · LLTV 91.5% · Oracle price derivation, Little cash to withdraw for a long time | $278K | Apr 2, 2026 |
| sdeUSD / USDCNot listedWorld Chain · LLTV 91.5% · Unrecognized collateral | $224K | Dec 11, 2025 |
| PT-slvlUSD-25SEP2025 / lvlUSDNot listedEthereum · LLTV 91.5% | $84.7K | Sep 25, 2025 |
| RLP / USDCNot listedArbitrum · LLTV 86.0% | $74.5K | Apr 9, 2026 |
| PT-wstUSR-1740182579 / USDCNot listedEthereum · LLTV 91.5% | $41.3K | Jan 23, 2025 |
| MC-USR / USD0Not listedEthereum · LLTV 91.5% · Little cash to withdraw for a long time | $27.4K | May 7, 2026 |
| RLP / USDCNot listedBase · LLTV 86.0% · Little cash to withdraw for a long time | $14.4K | Apr 16, 2026 |
| hbUSDT / USRNot listedHyperEVM · LLTV 91.5% · Oracle unusable | $8.5K | Jun 11, 2026 |
| cbBTC / wUSDLNot listedEthereum · LLTV 86.0% · Oracle unusable, Little cash to withdraw for a long time | $5.5K | Dec 4, 2025 |
| IMF / USDSNot listedEthereum · LLTV 62.5% · Unrecognized collateral | $4.6K | Apr 23, 2026 |
| deUSD / USDCNot listedEthereum · LLTV 86.0% · Oracle price derivation, Little cash to withdraw for a long time | $3.2K | Dec 25, 2025 |
| csUSDL / USDCNot listedEthereum · LLTV 96.5% · Oracle unusable, Little cash to withdraw for a long time | $2.4K | Dec 4, 2025 |
| wstUSR / USDCNot listedArbitrum · LLTV 91.5% · Little cash to withdraw for a long time | $1.8K | Mar 19, 2026 |
| LBTC / dUSDNot listedKatana · LLTV 77.0% · Oracle unusable | $1.0K | Apr 30, 2026 |
| STONE / WETHNot listedEthereum · LLTV 94.5% · Little cash to withdraw for a long time | $846 | Nov 5, 2026 |
| srNUSD / USDCListedEthereum · LLTV 91.5% · Little cash to withdraw for a long time | $633 | Aug 27, 2026 |
| PT-hbUSDT-18DEC2025 / USD₮0ListedHyperEVM · LLTV 86.0% · Little cash to withdraw for a long time | $466 | May 7, 2026 |
| wsrUSD / vbUSDCListedKatana · LLTV 91.5% · Little cash to withdraw for a long time | $96.00 | Aug 27, 2026 |
| yUSD / vbUSDCNot listedKatana · LLTV 86.0% | $61.00 | Dec 4, 2025 |
| IMF / USDSNot listedEthereum · LLTV 77.0% · Unrecognized collateral | $31.00 | Sep 3, 2026 |
| PT-sNUSD-4JUN2026 / USDCListedEthereum · LLTV 86.0% | $12.00 | Oct 1, 2026 |
| JOE / USDSNot listedEthereum · LLTV 77.0% · Unrecognized collateral | $11.00 | Jul 2, 2026 |
| CULT / USDSNot listedEthereum · LLTV 77.0% · Unrecognized collateral | $11.00 | Jun 11, 2026 |
| REKT / USDSNot listedEthereum · LLTV 77.0% · Unrecognized collateral | $11.00 | Sep 3, 2026 |
| agETH / WETHNot listedEthereum · LLTV 91.5% · Little cash to withdraw for a long time | $3.00 | Oct 8, 2026 |
| PT-kHYPE-13NOV2025 / USD₮0ListedHyperEVM · LLTV 62.5% · Little cash to withdraw for a long time | $2.00 | Oct 8, 2026 |
| ETH+ / eUSDListedEthereum · LLTV 77.0% | $1.00 | Oct 1, 2026 |
| Mog / USDSNot listedEthereum · LLTV 62.5% | $1.00 | Jun 25, 2026 |
| PEPE / USDSNot listedEthereum · LLTV 77.0% | $0 | Aug 27, 2026 |
| ynETHx / WETHNot listedEthereum · LLTV 91.5% | $0 | Oct 29, 2026 |
| USDC / USDCNot listedEthereum · LLTV 98.0% · Custom, Little cash to withdraw for a long time | $0 | Jul 16, 2026 |
| CULT / USDSNot listedEthereum · LLTV 62.5% · Unrecognized collateral, Little cash to withdraw for a long time | $0 | May 14, 2026 |
| cirBTC / wARSListedArc · LLTV 62.5% · Little cash to withdraw for a long time | $0 | Nov 5, 2026 |
| WETH / wARSListedArc · LLTV 62.5% · Little cash to withdraw for a long time | $0 | Nov 5, 2026 |
| USDC / wARSListedArc · LLTV 77.0% · Little cash to withdraw for a long time | $0 | Nov 5, 2026 |
"Lent when stuck" is the market's size in the last week its rate still looked normal, from Morpho's weekly records. Small stuck markets with no collateral, no listing and no losses written off are left out.
Other markets with bad debt
These markets are not stuck, but at some point a liquidation could not cover a loan. "Written off" losses have already been shared by that market's lenders; "open" bad debt has not been written off yet. Some have since emptied: those that wrote off less than $1,000 are left out of this list but counted in the total above.
| Market | Written off | Still open |
|---|---|---|
| RSS / USDCNot listedBase · LLTV 77.0% | $3.01M | – |
| Mog / USDSNot listedEthereum · LLTV 77.0% | $192K | – |
| sAMM-USDC/cUSDO / USDCNot listedBase · LLTV 86.0% | $98.7K | – |
| WLD / USDCNot listedWorld Chain · LLTV 77.0% | $43.4K | – |
| SPX / USDSNot listedEthereum · LLTV 62.5% | $38.9K | – |
| SPX / USDSNot listedEthereum · LLTV 77.0% | $36.6K | – |
| BITCOIN / USDSNot listedEthereum · LLTV 62.5% | $25.6K | – |
| NOTHING / USDGNot listedRobinhood Chain · LLTV 38.5% | $23.8K | – |
| ezETH / WETHNot listedEthereum · LLTV 86.0% | $22.4K | – |
| JOE / USDSNot listedEthereum · LLTV 62.5% | $22.4K | – |
| yETH / WETHNot listedEthereum · LLTV 91.5% | $18.7K | – |
| hgETH / WETHListedEthereum · LLTV 91.5% | $16.9K | – |
| REKT / USDSNot listedEthereum · LLTV 62.5% | $7.8K | – |
| wbCOIN / USDCNot listedBase · LLTV 86.0% | $6.7K | – |
| PT-apxUSD-18JUN2026 / USDCNot listedBase · LLTV 91.5% | $4.4K | – |
| stNXM / wNXMNot listedEthereum · LLTV 62.5% | $3.0K | – |
| Wrapped-LP-sUSDE-31JUL2025 / USDCNot listedEthereum · LLTV 91.5% | $1.9K | – |
| weETH / WETHNot listedBase · LLTV 91.5% | $1.6K | – |
| weETH / USDCNot listedBase · LLTV 77.0% | $935 | – |
| USDC / LCAPNot listedBase · LLTV 91.5% | $563 | – |
| uSUI / USDCNot listedBase · LLTV 77.0% | $509 | – |
| PT-USD0++-27MAR2025 / USDCNot listedEthereum · LLTV 91.5% | $50.00 | $300 |
| wstETH / USDTNot listedEthereum · LLTV 86.0% | $17.00 | – |
What this means for depositors
If you deposit in a vault, you only share a loss if your vault lent into the market where it happened. Curators choose those markets, which is why the vault pages on this site show every market a vault lends to. Unlisted markets are ones the Morpho app doesn't show; anyone can create a market, so many of them were never meant for the public. Read Morpho's risks explained and how liquidations work. Recent liquidations are on the liquidations page.