Built-In Protections for Lenders
Pillar Finance employs robust mechanisms to safeguard lender assets:
Protective Insurance Fund:
A portion of interest earnings is allocated to an insurance fund, compensating lenders in case of borrower defaults.
Default Protocols and Alerts:
Multi-tiered alerts monitor pool utilization rates.
Borrowers exceeding thresholds receive warnings, grace periods, and face potential defaults if limits persist.
Auction-Based Recovery(for Uncollateralized Loans):
In case of defaults, debt is auctioned to whitelisted participants, maximizing recovery for lenders.
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