# Risk & Security **Q: What happens if a borrower defaults on an invoice?**\ PayVia utilizes a hybrid security model. On-chain, the protocol utilizes a Tranche System (Junior/Senior pools) where Junior LPs absorb first losses in exchange for higher yields. Off-chain, the protocol is connected to a legal SPV (Special Purpose Vehicle) structure. If a default occurs, the legal entity has the power to pursue traditional debt collection and asset seizure in the borrower's jurisdiction, the proceeds of which are converted back to USDC and returned to the pool. **Q: How do you ensure the assets are real?**\ We integrate with Oracle partners and Data providers (e.g., ERP system integrations, bank API feeds) to verify the authenticity of invoices before they are tokenized. Furthermore, borrowers must pass strict KYB (Know Your Business) checks, preventing anonymous actors from minting bad debt. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.payvia.xyz/10.-frequently-asked-questions-faq/risk-and-security.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.