The leadership of Residual Token, Inc. dba Proformance Loans came together around the simple notion that while decentralization will eventually eliminate or reduce the need for financial intermediaries leveraging traditional and experienced industry entities and individuals is a good idea. We estimate broader adoption of a completely decentralized lending ecosystem, regulatory standards and basic customer privacy protection and asset security are a decade away from being the norm.

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Founders, Howard Krieger and Ryan Medlin, want you to have a good customer experience and leverage our platform to help your financial stability or achieve some lifetime goal.  We have developed world class customer service capabilities to ensure your experience with us is best in class.

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The Founders and Advisors have been in specialty finance, consumer and commercial lending in aggregate for over 100 years. A few key lending principles we follow, and from which all our customers benefit, include:

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• Accurately assessing the borrower’s willingness and ability to pay;

• Estimating the probability of default and likelihood of recovery;

• Maintaining responsible and appropriate collection practices;

• Supporting mechanisms for regress and addressing grievances;

• Structuring and Pricing loans such that:

  • ​Pull-through and funding are competitive;

  • The risks in the first two bullets are adequately covered;

  • Servicing and borrowing costs are covered; and

  • Investors are compensated for their risk.

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Our asset-backed lending protocols draw on lending concepts documented by Frank Fabozzi, and the principles of loss and recovery captured by Hull-White’s Risk Neutral Probability Default papers.

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It is our opinion that while regulations around digital asset-backed lending have not been explicitly codified by the Office of the Comptroller of the Currency (“OCC”) or other government agency, all of our protocols must comply with existing fiat currency lending regulations. Our statutory compliance is not limited to lending laws. We strictly adhere to securities’ laws and guidance set forth by the SEC, IRS, CFTC, CFPB and any number of federal and state agency with a vested interest in the future of digital assets. We welcome any opportunity to work with or comment on behalf of industry participants in developing these principles, best practices, recommendations, regulations or laws. 
 

We see a market consisting of digital asset holders, both individual consumers and commercial enterprises, whereby they are afforded the ability to borrow against their digital asset at market rates by obliging themselves to typical credit enhanced terms and conditions. In the future this will not be limited to cryptocurrency but all assets put on the blockchain (e.g. accounts receivable, medical billings, export/import bills of lading, etc.)

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Borrowers seek and entitled to secure and expeditious funds transfer upon execution of a loan agreement or as it pertains to the disposition of collateral.  Lenders want to focus on making good loans and staying in compliance with rules and regulations regarding the management of loan collateral. Residual and Proformance use bona fide, licensed escrow and custody (Vylla(R), formerly Carrington RMS) agents for transactions over $100,000 in collateral, to support the flow of capital in conjunction with the goals of a decentralized platform.

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Residual has engaged Scratch.fi to service the initial population of loans all Lenders originate.  Reducing risk and standardizing servicing make loans more affordable for borrowers and lowers capital costs of Lenders.

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And in a nutshell, that's our promise to you. Security you can trust, unmatched customer service and easy to use services.