Does 8lends Use Collateral?
Equipment, warehouses, receivables — not crypto. See which tangible assets stand behind an 8lends loan, and who decides what they are worth.
Yes. Every loan on 8lends is secured by real collateral – the tangible assets of the borrowing business. This is a Real World Assets (RWA) model: unlike purely crypto-backed DeFi platforms, collateral on 8lends means equipment, inventory, real estate, and accounts receivable. Maclear AG handles the valuation and legal processing of the collateral in its role as Collateral Agent. Each project page shows the type of collateral, its valuation, and the LTV – the ratio of the loan amount to the collateral value.
What assets are accepted as collateral?
8lends accepts liquid, tangible assets from real businesses as collateral:
- Equipment – production machinery, IT infrastructure, specialist gear
- Inventory and stock – goods for resale, raw materials, finished products
- Real estate – commercial, industrial, and warehouse properties
- Accounts receivable – money owed under completed contracts
- Vehicles – commercial vehicles, specialist equipment
- Financial guarantees – bank guarantees, corporate sureties
The exact type of collateral depends on the project and is shown on its profile.
Who evaluates the collateral
The Maclear AG team, acting as an independent Collateral Agent, evaluates the collateral. This assessment is part of the due diligence every borrower goes through before a business appears on the platform.
| Step | What Maclear AG does |
|---|---|
| Asset identification | Confirms the borrower's ownership of the assets |
| Valuation | Market valuation, taking liquidity and depreciation into account |
| Legal registration | Collateral agreements, registration of encumbrances |
| LTV calculation | Works out the loan amount relative to the collateral value |
| Monitoring | Keeps an eye on the collateral throughout the loan term |
Less than 10% of applications pass the screening, and that includes the collateral check.
What is LTV and what does it tell you?
LTV (Loan-to-Value) is the ratio of the loan amount to the collateral value:
LTV = Loan Amount ÷ Collateral Value
For example, a $100,000 loan backed by $200,000 of collateral gives an LTV of 50%. That means the collateral covers the loan two times over.
| LTV | Meaning |
|---|---|
| Low LTV (30–50%) | The collateral is worth significantly more than the loan – strong investor protection even if the asset price drops |
| Medium LTV (50–70%) | A healthy cushion, but less room if valuations swing |
| High LTV (70%+) | A thinner cushion, usually comes with a higher interest rate as a risk premium |
LTV is one of the factors that determines a project's credit rating (AAA to D) and its interest rate.
Where can you find collateral information?
Every project page in your 8lends account displays:
- Type of collateral
- Estimated collateral value
- Project’s LTV
- Borrower credit rating (AAA to D) – which partly reflects the collateral assessment
- Buyback availability for the project
What happens to the collateral in case of default?
What happens in case of default (60 days past due) depends on the project type:
- Standard RWA project – Maclear AG, as Collateral Agent, starts the process of selling the collateral. The timeline is 1 to 12 months. Proceeds are split among investors in proportion to their shares. For more detail, see What Happens if a Borrower Defaults?.
- Buyback project – a third party buys your position under the Buyback program and repays 100% of the loan principal. The collateral then passes to that partner. For more detail, see What Is Buyback Protection?.
Frequently Asked Questions
Does the collateral cover the full loan amount?
In most cases, more than 100%. The LTV on 8lends projects is typically below 100%, meaning the collateral value exceeds the loan amount. You can see the exact figures on each project page. That said, the actual money recovered from a sale depends on market conditions at the time.
What if the collateral loses value?
For volatile assets, the valuation is conservatively adjusted to allow for possible declines. Maclear AG monitors the collateral throughout the loan term. If there's a significant drop in value, investors are notified through the platform.
Who physically holds the collateral?
The collateral stays with the borrower for day-to-day operations (for instance, equipment keeps running in production). Legally, it's pledged to investors through security agreements put in place by Maclear AG. If a default happens, Maclear AG gains the right to sell the assets.
How do I know the collateral really exists?
The type and valuation of the collateral are published on the project page. The detailed documents (pledge agreements, registration papers, appraisal reports) are held by Maclear AG as Collateral Agent – they're part of the due diligence that happens before a project is listed.
What is RWA lending?
RWA (Real World Assets) lending is a model where loans are backed by actual, physical business assets rather than cryptocurrencies or digital tokens. That's what sets 8lends apart from pure DeFi platforms. For more, see What Is RWA Lending?.
Is collateral accepted from anywhere in the world?
It depends on the liquidity of the collateral and the borrower's jurisdiction. Maclear AG checks that the assets can be legally pledged and sold if a default occurs. If those conditions aren't met, the application is rejected during due diligence.
See also:
Risk Disclosure: Investing on 8lends involves risk, including the possible loss of principal. The presence of collateral does not guarantee you'll get all your money back – what a sale actually brings in depends on the market. Past performance is no guarantee of future results. 8lends is a platform operated by CLEARCHAIN CORP, registered with FINTRAC (Canada) as a Money Services Business. Maclear AG (Switzerland), a member of PolyReg SRO supervised by FINMA, acts as the Collateral Agent. Regulatory framework as of September 2026.