♻️Debt Recovery Process
Last updated
Last updated
PeerHive is committed to a transparent business model for all its issuers and lenders.
This is why we publish our Debt Recovery Process, which may be updated from time to time after consultation with a regulator, compliance experts, and law professionals.
PeerHive does not charge an origination fee upfront to the issuer. Instead, the origination fee is reinvested back into the loan pool to increase exposure for the protocol.
If the loan pool defaults and the collateral is not recovered from the issuer, PeerHive stands to lose money, which increases confidence for lenders and incentivizes the platform to recover lender's loss on their behalf.
The DAO of the lender for the specific loan pool will establish the terms and conditions of the negotiation. This will reduce the possibility of collusion between the platform and the issuer.
PeerHive will only execute the terms and conditions if the DAO has conducted a majority vote. PeerHive will provide the best action plan and recovery advice from a legal and compliance perspective.
All committed lenders will be added to a secure forum where they can communicate and vote on loan-related matters with the issuer.
The Debt Recovery Task Force (DRTF) will take charge of the defaulted loan pool and keep the forum updated on the status of the recovery efforts; this will fall in-line with the debt recovery process we outline above.
