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"base:title": "0oo - Capped debt"
"og:title": "Capped debt"
"og:description": "If I invest £1000 in a venture and the venture succeeds, I want maximum upside. If the £1000 investment fails, I want to get my money back without default, plus a penalty for each year that my capital goes unpaid. So my maximum risk is £1000 and the foregone interest of the debt. I think this is fair and does not punish failure"
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"item:title": "Capped debt"
"item:summary": "The problem with debt is if something fails, the debt provided an unlimited risk, we want failure to have a minimum cost."
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    If I invest £1000 in a venture and the venture succeeds, I want maximum upside.
    If the £1000 investment fails, I want to get my money back without default, plus a penalty for each year that my capital goes unpaid.
    So my maximum risk is £1000 and the foregone interest of the debt.
    I think this is fair and does not punish failure
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"item:owner": "chronological"
"item:created": "2022-07-24T22:54:47.080500"
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- "id": "a-293001"
  "text": |
    How is this different from the idea of "[Convertible note](https://en.wikipedia.org/wiki/Convertible_bond)"?
  "owner": "Mindey"
  "ownerlink": "/user/147/Mindey"
  "permalink": "/method/159001/?l=en#a-293001"
  "created": "2022-08-08T01:44:52.763967"
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