The funds in the special account for risk reserve of Yitong Loan Platform will be specially used to compensate the investors of Yitong Loan for the loss of principal or principal and interest due to the borrower's default. This means that the funds of the investors of Yitong Loan are added with a security lock after the loan. The practice of strengthening risk control by setting up risk reserve accounts originally came from traditional financial markets. In this concept, risk reserve refers to the funds set up by the exchange to maintain the normal operation of the futures market and make up for the losses caused by unforeseeable risks of the exchange.
In order to ensure the safety of all investors in the platform, in addition to the security provided by the system and mode, Yitong Loan will also set up a special account for risk reserve.