Accrued Yield Sample Clauses

Accrued Yield. In the event a borrower becomes insolvent, the Issuer’s claims to the assets may be subject to lengthy legal proceedings, and the Issuer may be treated as unsecured creditors, with limited rights to recover the Issuer’s assets. The outcome of insolvency proceedings is uncertain and may result in partial or total loss of lent assets and any associated returns. The legal frameworks governing digital asset ownership and transfer are still developing, and there may be ambiguity regarding the Issuer’s rights in certain jurisdictions or under specific circumstances. In the event of a dispute, the Issuer may face challenges in proving ownership or priority, and legal remedies may be limited or unavailable. A large portion of the Issuer’s XAUt assets may be lent to a concentrated party of lenders. Concentration of credit exposure can magnify the impact of a default, potentially resulting in outsized losses relative to a more diversified lending portfolio. This risk is particularly acute in the digital asset sector, where the pool of creditworthy borrowers may be limited and market participants may be highly interconnected. The Issuer may experience loss, delays, or disputes in the Issuer’s XAUt lending. Negative publicity, customer dissatisfaction, or perceived weaknesses in the Issuer’s risk management practices could erode trust among clients, partners, and regulators. Reputational damage may lead to reduced business opportunities, increased regulatory scrutiny, and challenges in attracting or retaining customers. Digital asset market has been volatile and market conditions may become adverse, which constrain borrowers’ financial positions, increasing the likelihood of defaults. At the same time, market volatility and declining asset values may reduce the attractiveness of lending activities, leading to lower volumes and revenues. The Issuer and its borrower may rely on third-party custodians to hold loaned assets. Reliance on external custodians introduces counterparty risk, and the failure or misconduct of a custodian could result in the loss or inaccessibility of the Issuer’s assets. Legal proceedings to recover assets from insolvent or disputed custodians may be protracted and uncertain, potentially resulting in significant financial losses. Borrower Prestige Wealth Management Limited Lender Northstar Digital (HK) Limited Format Term Loan Closing Date Concurrent with closing of the Contemplated Transactions Security Senior secured interest with first priorit...