If Ledn determines that there’s a non-performing loan with any of the counterparties that pay Ledn in return for borrowing digital assets, Growth account clients will still be able to access unimpaired funds quickly, rather than having those assets tied up in tedious bankruptcy proceedings.
In order to ensure that you have access to as much of your assets as quickly as possible, your account will be temporary locked for investigation, though you'll continue to earn interest during the investigation period.
Once we’ve determined the size of the potential loan impairment, any unimpaired assets will continue to be accessible to you and continue to earn yield. You’ll also have the ability to view the status of the impaired loan recovery process. Once Ledn has recovered as much assets as possible, we’ll return the recovered assets to your Growth account.
While we do everything we can to keep your assets safe, it is possible that loan losses may happen. IN THE EVENT OF AN IMPAIRED INSTITUTIONAL LOAN, LEDN WILL DO EVERYTHING IN ITS POWER TO RECOVER AS MUCH ASSETS AS POSSIBLE FROM THAT INSTITUTIONAL BORROWER, AND ANY RESULTING LOSS WILL BE BORNE PROPORTIONATELY BY ALL GROWTH ACCOUNT HOLDERS WHO ARE EXPOSED TO SUCH COUNTERPARTY. It is important to note that your Growth account is not guaranteed by any entity. Unlike bank accounts or guaranteed investment certificates, a Growth account is not covered by any government deposit insurer.