🤝Crowd Collateral

Crowd Collateral is an innovative mechanism implemented by EthicHub to boost impact investment, protecting loans to Originators, who, thanks to this risk mitigation mechanism, are able to access alternative financing that allows them to improve their standard of living and that of their families through their own productivity.

To provide collateral it is necessary to have Ethix, EthicHub's own token whose main function is to back the loans to farmers within its ecosystem.

The yield obtained by providing collateral is provided in Ethix.

There are two types of crowd collateral with different types of risk and therefore, with different yield (in both cases, Ethix are exposed to price fluctuation):

🟢 Crowd collateral for Originators to directly support loans to small agricultural cooperatives which will be liquidated in case of a default.

🟢 General crowd collateral to provide additional collateral to the loans. It presents lower risk and yield than direct collateral to the Originators since it would be liquidated only in the event of direct collateral not being able to meet the commitments generated.