Failure to install the Project

This undesirable situation could come from different scenarios:

  • The installation company goes bankrupt and ceases operations in the middle of the installation process,

  • A natural disaster occurs and destroys a significant portion of the Project components,

  • A robbery occurs and a significant portion of the components to be installed is lost.

  • Any other scenario that poses a significant affectation for the Project developer or the components of the asset.

Although each case will have their own particularities, the following guidelines provide a high-level methodology for handling them:

  1. If the situation implies a significant detriment to the patrimony or assets that belong to the Project, and the losses can be recovered by means of activating an insurance policy, a contract responsibility clause, or any other mechanism, then the Project will be put in a PAUSED state. No more funding will be received in this state until the Project’s situation is resolved. If necessary, the installation company could be changed. As funds are recovered and the installation of the Project is normalized, the Project can be put back in the FUNDING stage and the Project will continue as normal. In this scenario the Project schedule would have to be extended and the pWatt buyer would have to wait longer for getting their pWatts swapped into uWatts.

  2. On the other hand, if a significant portion of the funds cannot be recovered, the project will be set as CANCELED. After this, any residual value of the Project will be recovered and incorporated to the Project’s development fund. After all possible residual value has been recovered, the Project will now be set in IN_REFUND state, and at this stage pWatt holders will be able to swap their pWatts in exchange for the percentage of the USDT in the Project’s development fund.

The recovered funds would be the sum of:

  • Any liquidity that was not yet delivered to the installation company, since the corresponding milestone was not yet achieved.

  • Any recoverable liquidity that was delivered to the installation company but wasn’t yet spent or executed.

  • The sale of the existing components for the development of another Project,

  • The damages or settlement of any lawsuit against any of the parties that have direct or indirect responsibility for the detriment.

It is worth mentioning explicitly that the last scenario does imply a risk of lost funds for the pWatt buyers

Last updated