Your Loss Reserve is a required initial deposit against which your Sivo Debt line is secured.

Before you can activate your Sivo Debt line, you must deposit your Loss Reserve into your Sivo Account.

After your Loss Reserve initial deposit, your Sivo Debt line will start out as 1x leverage with a limit that reflects the available balance of your Sivo account. If the balance of your Sivo account is $1,000,000, you'll be able to borrow up to $1,000,000 from Sivo.

The balance of your Sivo Debt line is secured against funds in your Sivo account. In other words, your initial Loss Reserve functions as cash collateral for your Debt line.

Overtime, your leverage will increase as long as the performance of your Debt line is in line with its initial risk assessment. This approach provides originators with fast access to debt capital while working toward increasing their leverage over time to 2x, 4x, and even 10x of your initial Loss Reserve.

For example, when your company achieves 10x leverage, with an initial $200,000 Loss Reserve deposit, you will be able to borrow up to $2,000,000 from Sivo.

PRO TIP: don’t have the cash available for the full initial Loss Reserve? No problem! Deposit as much as you can to activate your line and complete your Loss Reserve over time. Your leverage timeline will adjust accordingly automatically.