Economic Risk Controls
| Control | Purpose |
|---|---|
| Loan-to-value limits | Maintain an equity buffer against collateral value changes. |
| Debt service reserves | Provide a payment buffer during operational or cash-flow delays. |
| Amortization | Reduce principal exposure as loans are repaid. |
| Redemption mechanics | Match depositor liquidity with the timing of underlying assets. |
Legal & Collateral Protection
Borrower SPVs, security agreements, liens and control arrangements are used to establish enforceable rights over financed hardware and related cash flows.
Physical collateral monitoring and insurance can add additional protection, subject to the terms and limits of each arrangement.
Operational & Governance Controls
Loan eligibility, servicing logic, protocol roles and governance parameters are separated so that operational actions remain bounded by disclosed rules and permissions.
Important
Risk cannot be eliminated. Yield is not guaranteed, collateral values can change, borrowers can default and redemption timing can extend when capital is deployed into illiquid loans.