Project Collateral

Collateralization is a core safeguard on 8lends: every loan must be 100% backed by real-world assets, protecting investors and reducing default risk.

1. Asset Types & Initial Valuation

   • Tangible collateral - inventory, equipment, real estate, receivables - must cover the full loan amount.

   • Example: A manufacturing company pledges its CNC machinery; Maclear’s team verifies its market value before any KYB/DD work begins.

2. Legal Lien & Ongoing Monitoring

   • After due diligence and pool approval, 8lends records a legal lien on the assets.

   • Collateral is periodically monitored to ensure it remains sufficient and unencumbered.

   • Example: A logistics firm’s vehicle fleet is appraised by an external valuer at origination, then spot-checked quarterly by the platform to confirm each truck still meets the required collateral value.

3. Default & Liquidation Process

   • Upon a Project default (see Defaul), 8lends acquires full legal authority to liquidate the assets - via open auction or private sale at management’s discretion.

   • Platform enforcement fees (see Fees) are deducted from gross proceeds; the net amount is credited back into the lending pool for user distributions.

   • Example: If a retail business defaults, its pledged inventory may be sold in a bulk auction; after a 5 % enforcement fee, the remaining funds are distributed pro-rata to CT-token holders.

Note: All collateral management is manual and off-chain - assets are not tokenized nor auto-liquidated on-chain, so users should expect a processing delay between default and final distribution.