Smart contract auditing platform Sherlock predicted a $4 million loss for its stakers, about a third of the capital in its staking pool, because of Orthogonal Trading FTX-induced loan defaults on crypto lending protocol Maple Finance, the firm said Monday in a blog post.

Sherlock said it had deposited some $5 million USDC of its $12 million staking pool on Aug. 31 to the credit pool on Maple overseen by M11 Credit.

Sherlock said it initiated removing funds at the end of November after the lock-up expired, and was in the middle of the 10-day waiting period before reclaiming assets when Orthogonal Trading defaulted on Dec. 5.

Sherlock stakers would likely stomach a $3.75-4 million loss, the platform predicted, as 20-25% of the funds might be recoverable.