Hardship and losses
Hardship handling is defined in advance
Hardship handling needs documented, fair rules and accountable human responsibilities. Members must have an accessible assistance, complaint and correction path. Deterministic calculations do not remove lawful remedies or justify hidden exceptions. The actual hardship policy is not yet approved.
The specifics live in the rules, including their limits. What this article can say honestly: the model does not promise rescue, and it does not allow hidden exceptions in either direction.
Losses are possible
Financing can go unpaid. The loss exposure of each party depends on law, its instrument and the adopted agreements. No loss waterfall is selected here. Member share capital, repayable savings, institutional financing, donations and guarantees must not be treated as having identical rights or risks.
How allocation is designed to work
- Return allocation and loss allocation must be designed separately; interest collected is not automatically distributable surplus.
- Proportional losses alone do not give poorer members additional protection. Any first-loss support, guarantee, reserve or exposure limit needs its own validated basis; none is announced here.
- Employment knowledge is not an employer guarantee. Employer difficulty may cause job losses, borrower defaults and failure of promised support at the same time.
- This website promises no return, insurance or guarantee. Accounting separation is not proof that programs are legally insulated from each other's losses.
Where the detail lives
Each program's adopted rules and applicable requirements must define the mechanics and parameters before it opens. Those details remain unpublished while the cooperative-first model is being finalized. This article explains design principles, not a settled loss waterfall. See Rules and implementation status.
Current state
No lending is live. Hardship and loss behaviour is exercised in testing, where it can be inspected and corrected before any real participant is affected.