> We track all the properties in our portfolio daily. Any on paper depreciation will result in us depositing funds into the 3rd party account. Whenever a property price moves above the original purchase price on paper, we will withdraw any previously deposited fund. This on-going process along with the hedging instruments are what allows us to guarantee the downside protection.

So how does it work if your system values a property above what it's actually able to sell for? It sounds like so long as you value the property at or above the initial purchase price, there is $0 set aside to pay out any loss of value claims. If the owner sells into a falling market, and needs to sell for less than the initial price how can you pay out? Why wouldnt they just take any price they can get if they have 100% downside protection?

Moreso - if the overall housing market is falling, how does the business survive if all of your customers sell at a loss? I can't think why someone wouldn't sell if they have 100% downside protection and can then move into a cheaper home.