Residual value insurance (RVI)
Residual value insurance (RVI) puts an insured floor under what equipment will be worth at the trigger dates set in the policy.
If eligible equipment sells for less than the floor at a covered trigger date, the issuing insurer pays the shortfall, subject to the policy terms.
A 20% floor at a covered trigger date
| Insured floor | 20% of original cost |
| Sale price at the trigger date | 5% of original cost |
| Policy pays | 15% of original cost |
From the GPU loan default playbook. Hypothetical.
How it works
A floor at named dates. The policy sets an insured floor under what eligible equipment will be worth at the trigger dates it names. If the equipment sells for less than the floor at a covered date, the insurer pays the shortfall, subject to the policy terms (how a residual value floor works).
The sale has to follow the policy. It excludes unmaintained equipment and a skipped disposal process; physical damage stays with property insurance and defects with the OEM warranty.
Few participants for GPUs. Corgi has announced residual value protection for GPU hardware; Barker sells a value warranty, reinsured by Munich Re, on USD.AI loans, which is a warranty from the provider rather than a policy the lender holds; NVIDIA has been reported in early talks with insurers (the insurance market map).
What lenders check
It turns the worst-case resale into a known number, which supports a balloon payment, a junior tranche, an equity exit or an FMV lease return.
It matters most when the offtake is shorter than the loan: the gap between contract end and maturity is repaid from resale. Our product is Recovery floor (20%+), RVI.
Discuss a transaction
Send us the equipment list and the loan or lease you have in mind. We will come back with an indication and the questions we would need answered.
Prefer email? hello@amcompute.com