Browsing through projects on 8lends, you’ve likely noticed a special badge on some of them — "Buyback Guarantee".
For an investor, this badge works like an airbag in a car. In this article, we will tell you who provides this protection, how the "60-day" rule works, and why with this option you will not lose your principal investment.
What is Buyback in 8lends?
Buyback is a legal obligation of a third party to purchase your debt if the borrower stops paying.
In practice, this means your investments are under 100% protection. If the business you lent to collapses, you still get your invested money (Principal) back in full.
This protection is provided by our strategic partner from Moldova — a specialized financial organization dedicated to credit risk management. We have a master agreement: if the borrower doesn't pay, the partner pays for them.
The "60 Days" Rule: How the Mechanism Works
The protection system triggers automatically if the borrower delays interest payments for more than 60 days.
You don't need to write applications or go to court. The algorithm is as follows:
- Delinquency: The borrower misses the scheduled payment date.
- Waiting: The counter starts. For 60 days, our collectors and lawyers try to get the borrower back on schedule.
- Buyback Activation: If there is no money by day 61, our Partner buys out the debt.
- Refund: You receive 100% of the investment body (Principal) back.
Important nuance: All interest (Interest) that you managed to receive before the moment of delay remains yours. No one will take it back.
Real Example: Counting the Money
Let's break down the situation with numbers so you can see the logic.
Imagine you invested in a project marked "Buyback".
- Investment: $5,000
- Rate: 20% APY
- Term: 9 months
- Monthly Income: ~$83.3
Timeline of events:
- January — May (All good): You receive payments regularly. In 5 months, you earned and withdrew 416.5 (83.3 × 5) to your wallet.
- June (Failure): The borrower delays payment. The delinquency countdown begins.
- July (30 days overdue): No payment. We are negotiating, but money is not coming in.
- August (60 days overdue): Time is up. Buyback Guarantee activates.
Result for you: The Partner transfers the principal amount of your debt — $5,000 — to the smart contract. You claim it back. The $416.5 you earned in winter and spring remains your net profit. Even in the event of a borrower default, you do not lose your money and still walk away with a small profit.
What if there is no "Buyback" badge?
Not all projects have this option. If you invest in a project without the Buyback mark, the classic protection mechanism via collateral (RWA) is enabled.
In this case, the Maclear Collateral Agent steps in. We begin the legal procedure of seizing and selling collateral (cars, real estate) to return money to investors.
Read more about how collateral protection works and who Maclear is in our article:
👉 [RWA and the Role of Maclear: Who Guarantees the Quality of Collateral?]
Summary
- Buyback badge present: With a 60-day delay, the partner returns 100% of invested money. The risk of capital loss tends to zero.
- No Buyback badge: Your money is protected by real assets (RWA), which in case of default will be sold and returned strictly proportionally.
Choose the strategy that suits you best.