> Default Deterrence > In traditional retail lending schemes, borrowers are dissuaded from defaulting for fear of primarily two things: repercussions on their

> Default Deterrence > In traditional retail lending schemes, borrowers are dissuaded from defaulting for fear of primarily two things: repercussions on their future creditworthiness, and legal actions forcing either a forfeiture of assets or bankruptcy. The Dharma Protocol replicates the first as part of the Risk-Assessment Attestation mechanism described above. However, the levers of the legal system will likely be unavailable to lenders in the Dharma ecosystem, given the challenges inherent to employing legal resources in the context of international lending and, especially, developing world lending. With no collateral, I'm not sure how this can really work.