[SeoxyS]

Hey - I'm "Mr. Ballenegger." (Coincidentally, that reporter found me through an HN comment where I explained how secondaries worked.)

Derivatives like this are typically structured as a sale of the economic interest, not a loan. In this scenario, if the company sells or IPOs, the terms call for me to liquidate my position as soon as possible and transfer the proceeds to the buyer. If the sale is not a positive outcome for the investor, I have no liability.

I think this could probably have been worded much better in the article.