Distribution Waterfall

A Distribution Waterfall is the order in which funds recovered from the sale of collateral are distributed after a borrower defaults. The distribution follows this sequence:

• 1. Maclear AG's legal and operational recovery costs (typically 5–15% of the recovered amount)
• 2. Overdue interest owed to investors
• 3. Loan principal repaid to investors in proportion to their share of the funding pool
• 4. Accrued penalty interest (if applicable)