$MARSCOIN
Cooling DownSnapshot Window: 2026-08-31 05:40 UTC · ← Back to Crypto Overview
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Verbatim Community Citations & Social Evidence 1 source posts analyzed
The part credit investors care about: XLS-66 has optional first-loss capital that absorbs default losses before depositors. It separates impairment (a provisional mark-down) from default (formal, after a grace period), and marks down value per share rather than diluting holders.
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AI visual note: A diagram titled "How defaults are absorbed" illustrates the XLS-66 first-loss capital mechanism, showing that when a loan defaults, losses first hit the broker's optional first-loss capital before affecting depositors/LPs, with impairment being a provisional paper loss that clears if paid and default occurring only after a defined grace period—losses reduce share value rather than diluting holders.