Quote from: holydarkness on February 28, 2018, 06:18:32 PM

Quote from: celsius.network on February 19, 2018, 07:51:37 PM

Quote from: holydarkness on February 19, 2018, 06:25:16 PM

~snip~

I would like to be in touch on telegram for discussion, however for this kind of question, I think it is better be held here, so investors and information seekers fan find these kind of info easily, because an info and discussion on telegram can be easily drowned.

So, as this project paid their members from the interest generated through a loan funding, and as we all know that lending is a high-risk-high-return project, I would like to know if you have a prevention method for a case of default?

I couldnt agree more with you regarding the information being placed here, great for awareness.

Going back to your questions, I would really like to refer you to the page 8 of our whitepaper.

"Security and Risk
Celsius is building the platform with security at its core. We will use bankgrade
security to keep our members assets and data safe. From multi-factor
authentication, to encryption, to private-key double vaults, and more. Our
software is designed with security in mind.
Crypto assets will be distributed among several wallets and top exchanges. In
addition, we will store a cold wallet treasury to provide last-resort insurance in
case of a catastrophic event. We will also employ white-hat hackers and third
party cyber security solutions to provide a continuous cover layer of audit and
protection"

for more information please refer to the whitepaper ;https://celsius.network/wp-content/uploads/2018/03/celsius_whitepaper-march21.pdf

Sorry for being not clear, I see that your explanation is about security of your system being hacked or other related event of cyber crime, however, whar I want to know is a case of default, like when the borrower failed to pay back what he borrowed. The fund that your company use to lend the borrower are coming from your wallet user, which if I may be blunt, is not entirely your money. Thus, if someone, let's say, borrowed something worth billions of dollars and run, what is lost is your customers' money. How do you plam to prevent this?

Hey Holydarkness, first of all there is nothing to be sorry about, the reason why we are here is to answer the doubts and questions of all users, your worry is, what would happen if a celsius user borrowed a massive amount of USD dollars against his currency and then he doesnt pay back, well first of all the money that will be borrowed to users is part of the "Celsius Loans Reserve" and "Lender's Insurance Pool" (this two are part of the investment made on pre-sale and crowd-sale, investors and private investors). Then users will not be able to borrow more money than what they already have on crypto-currencies or "Celsius tokens", If borrowers fail to pay back, they wont be able to retrieve their crypto-currencies as a matter of fact their crypto-currency will become part of "Celsius Loans Reserve" till the amount borrowed gets paid back.

If you have any more doubts please feel free to get back to me.