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Financial warranty is a type of guarantee provided by a financial institution, such as a bank or insurance company, to ensure the financial performance of a specific product or service. This type of warranty is often used in the context of financial transactions, such as loans, investments, or insurance policies, to provide assurance to the customer that their financial interests are protected. Financial warranties can cover a range of risks, including default on a loan, loss of investment capital, or failure to pay out on an insurance claim. By providing a financial warranty, the institution is demonstrating its confidence in the product or service and taking on the responsibility for any potential financial losses that may occur.