If Ledn identifies a non-performing loan with any of the counterparties that borrow digital assets to generate interest for our Growth accounts, we take immediate steps to protect our clients' assets. Here’s what happens:
- Access to Unimpaired Funds:
Growth account clients will still be able to access unimpaired funds quickly, ensuring that assets aren’t tied up in lengthy and complex bankruptcy proceedings. - Temporary Account Lock for Investigation:
To ensure the safety and integrity of your assets, your account may be temporarily locked for the duration of our investigation. During this period, you will continue to earn interest on your holdings. - Outcome of the Investigation:
- Once the investigation concludes and we determine the extent of any loan impairment, all unimpaired assets will remain accessible to you and will continue to earn interest.
- You will be able to view the status of the recovery efforts for the impaired loan.
- As we recover assets from the defaulted loan, we will distribute any recovered amounts back to affected Growth account holders on a proportional basis.
- Risk of Loan Losses:
While Ledn employs rigorous measures to safeguard client assets, it is important to acknowledge that loan losses may occur. 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. Any losses that cannot be recovered will be proportionately shared among all Growth account holders exposed to that counterparty.
Important Note:
Your Growth account is not insured or guaranteed by any entity. Unlike traditional bank accounts or guaranteed investment certificates, Growth accounts are not covered by government deposit insurance or other investor protection schemes.