Default loans is the core problem of every business in the field and we believe we found the perfect solution for mitigating that risk as much as possible. leaving behind the heavy burden of collateral from the borrowers we had to find an extensive mechanism to compensate for that and here it is in a nut shell:

1. First we believe that the best way to deal with default loans is to do the best avoiding them in the first place. So by using well known "real" world score providers to asses the borrower's ability to redeem the loan and uploading that so called score tor Reputation to the blockchain. Low score borrowers will not get loans easily. We are also using syndicated loan system the divide the loan amount by several borrowers, adding to that the fact that the borrower fills a loan application that serves as a valid contract, we are able to dramatically reduce the default rates in the first place.

2. After a loan is initiated, certain amount of the principle will be deposited in a special compensation fund to be used as an insurance pool.

3. In case a default loan takes place, the lender will be partially compensated from the compensation fund. The loan contract will be then sold to local official and regulated debt collectors in the country of residence of the borrower, recovering the loan amount in a certain discount (depending on that country standards also calculated in first place by the score provider). The two recovering methods combined will assure a full refund for the lender's money.