EvenFi offers investment opportunities in various projects. To provide greater protection for investors, some projects published on the platform are covered by suretyships. In this article, we will explain what suretyships are in EvenFi projects and how they can come in various types, offering increased coverage in case of default. Keep in mind that the presence of a suretyship does not ensure 100% the repayment capital, but provides added security for investors.
Suretyships in EvenFi Projects: A suretyships is a commitment taken by a third party, ensuring the payment of a debt or an obligation in case the primary debtor fails to fulfill their obligations. In EvenFi projects covered by suretyships, several types of guarantees can be present, including:
Recommendations for Investors: It is important to remember that, while offering increased protection, suretyships do not ensure 100% of the repayment of capital. Investors must still carefully evaluate the company's balance sheets and documents provided and invest cautiously. Also, in the case that the suretyship is needed for debt repayment, the recovery time for the assets can be lengthy due to bureaucracy.
Along with these assurances, it's important to note an exception: when the guarantor is a foreign individual, enforcing the suretyship and recouping the money to repay the loan may present additional challenges
In conclusion, EvenFi projects covered by suretyships offer additional protection for investors, but it is always crucial to carefully analyze projects and company documents before investing. Remember to invest prudently and responsibly!