Funding a loan & the guarantee

After both parties sign, the borrower reserves their collateral on-chain. Only then do you fund — and you receive a guarantee from Helva first.

The sequence

sequenceDiagram
    autonumber
    actor L as You
    participant H as Helva
    participant B as Borrower

    B->>B: Reserve collateral via Letter of Credit
    H-->>L: Issue guarantee
    L->>H: Send funds to clearing account
    H->>B: Forward funds to borrower
    Note over L,H: Funds are forwarded promptly, not warehoused

You only send money after the collateral is reserved and the guarantee is issued — so your position is secured before your cash moves.

What the guarantee is

The guarantee is issued by Helva and is backed by a first-loss reserve plus Helva’s balance sheet. If a liquidation ever falls short of covering principal + interest, the reserve absorbs the first tranche, and the guarantee applies beyond it.

Bounded, not unlimited

We communicate guarantee capacity honestly. It does not absorb unlimited market tail risk. Shortfall probability is kept low by conservative collateral ratios, a most-liquid-collateral-only policy, a conversion-route liquidity cap, and loan-size limits. See Risks & mitigations.

How your money is held

Funds you send sit in a segregated Swiss client transaction account and are forwarded to the borrower promptly. If collateral is later converted (at repayment-by-collateral, liquidation or default), the resulting assets are held in custody for you — they never enter Helva’s balance sheet — and are converted to your financing currency and remitted to you. See Helva’s underlying entity.

Next: Getting repaid →