guess I could explain this 70% better.
The reason the loans can only amount to 70% of the HP of the account is to leave headroom for transactions after the loan as well as leave HIVE in the account incase the user tries to tamper with the repayment automation cycle and ends up incurring a tampering penalty (not sure what these look like yet).
Borrowers will also have to have their recovery account signed over to a whitelisted partner account or the hive.loans account itself. Part of launching this service is also offering free automated account recovery to everyone wishing to use hive.loans as their recovery account in the future. Tools on-site help users change their recovery account as well as recover keys if need be.