Koko has defined specific thresholds for Days Past Due (DPD) to manage transaction default rates:

1. If the default rate falls between 5% and 10%, a warning alert will be issued to address potential risks.

2. A 14-day suspension will be imposed if the default rate falls between 10% and 15%, aiming to mitigate the increase in default rates.

3. If the default rate for DPD 1+ transactions is 10% or higher after reactivation, termination procedures will be initiated.

4. Termination procedures will be initiated if the default rate for Koko transactions is 15% or higher.