In the event the start up folds due to insolvency, Token DPA holders may not receive tokens or cash back, but as debt holders they would be entitled to any available assets over equity or SAFT holders, during a dissolution of the business, generally.
A Token DPA can have a hard cap on the time period money may be borrowed in, ensuring that investors capital isnt contributed to a project that wont materialize within a set period of time.
Companies can customize the Token DPA to include repurchase rights as well as allow for refinancings. Depending on the terms of a company's Token DPA, investors should be aware that repayment in cash or tokens may result in no return.