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All termsRiskWorth knowing

Recovery Rate

Recovery rate is the proportion of money that creditors ultimately recover after a borrower defaults. The amount recovered can depend on collateral, seniority, legal proceedings, asset values and other factors.

Why it matters to you

Default does not always mean investors lose everything, just as collateral does not guarantee they will recover everything. For tokenized private credit and debt investments, investors should consider both the probability of default and what might realistically be recovered if default occurs.

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