Value of secured property insufficient to cover defaulted loan

In circumstances where your funds are matched to a secured loan and where lenders funding that loan are not fully compensated by the Provision Fund in the event of a default, your investment may be impacted by the realisable value of the property over which a security interest is held, to the extent that the realisable value is not sufficient to cover the full repayment of the loan. In other words, if a loan is secured, its repayment is not guaranteed.