Sounds too good to be true. I would be skeptical that this would actually happen. If the price collapses, all borrowers would be crushed at the same time and the companies promising to cover the losses will go under. Remember 2008?

I disagree with your premise that this is low-risk investing. What are the loans being used for? Investing in crypto on margin? VERY high risk.

There are much more stable ways to earn good returns such as investment real estate and value investing in the stock market. It may not be as exciting, but it produces solid returns year after year without all the risk and drama if done right.