Questions tagged [not paying back]

ZenMindful Wed Jul 31 2024 | 7 answers 1571

I'm curious, what exactly transpires if an individual fails to repay a flash loan? Are there any severe consequences or penalties in place for defaulting on such a loan? How does the system handle these situations to ensure both lenders and borrowers are protected? I'd appreciate a clear and concise explanation of the potential outcomes and implications of not fulfilling a flash loan obligation.