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First-loss capital

ELI5

The broker's own money takes the first hit if a borrower stops paying.

Technical

Funds a loan broker deposits that absorb part of a default's loss before vault depositors. Proposed.

Lessons

Borrowing from a vaultD2 · 3 min Brokers and first-loss capitalD2 · 3 min Repayments, late payments and defaultsD2 · 3 min