❓FAQs

Frequently Asked Questions

Funding Parties

Q: How does the platform ensure lenders are matched with creditworthy borrowers? A: Our platform employs advanced data analysis to assign risk scores to borrowers, taking into account factors such as repayment history, collateral value, and overall credit history. This ensures lenders are matched with creditworthy borrowers, reducing the probability of default. Q: How does the platform guarantee reasonable returns for lenders? A: By pairing lenders with suitable borrowers who align with their risk and return preferences through our loan matching contract, the platform guarantees lenders can earn reasonable returns on their loans.

Q: How does the platform maintain sufficient liquidity to meet borrower demand? A: To create a balanced lending ecosystem, our platform incentivizes lenders with rewards, offers efficient loan assignment management tools, and employs data analytics to adjust liquidity according to borrower demand.

Q: How does the platform ensure timely and efficient exit for lenders? A: Lenders can easily exit their positions, as our platform tokenizes loans as ERC721 tokens, enabling transfer and trade on secondary markets for quick liquidation when desired.

Q: What risk management strategies does the platform implement to protect lenders? A: To safeguard lenders from defaults and other risks, our platform requires borrowers to post collateral, assigns risk ratings, and enforces liquidation mechanisms in case of default, minimizing potential losses.

Borrowing Parties

Q: How does the platform ensure borrowers have access to reasonable loan rates? A: Our platform guarantees borrowers access to loans at reasonable rates by employing a loan matching contract that connects borrowers with appropriate lenders based on loan parameters, such as interest rates and maturity.

Q: How does the platform provide sufficient liquidity to meet borrowing needs? A: The platform maintains sufficient liquidity for borrowers by attracting a diverse pool of lenders and leveraging automated order management to efficiently match borrowing requests with available funds.

Q: How does the platform ensure competitive borrowing rates that reflect market supply and demand? A: Our platform keeps borrowing rates competitive by using the loan matching contract to continuously evaluate loan requests and offers, matching compatible pairs based on market conditions and supply and demand dynamics.

Q: How does the platform guarantee a fair and transparent lending process? A: We ensure a fair and transparent lending process by providing clear information on loan terms, interest rates, and fees. Smart contracts eliminate hidden fees, and all transactions are recorded on the blockchain for auditability.

Q: What risk management strategies does the platform implement for borrower protection? A: To protect borrowers, our platform employs risk management strategies that include requiring collateral for loans, assigning risk ratings to borrowers, and applying liquidation mechanisms in case of default to minimize the impact on borrowers.

Lenders and Borrowers

Q: How does the platform help evaluate borrower's creditworthiness and the suitability of loan offers? A: Our platform's advanced data analysis and risk assessment functions enable lenders to confidently assess borrower creditworthiness and risk profiles, while empowering borrowers to evaluate the suitability of loan offers. With a transparent risk rating system, collateral details, and other relevant data, both parties can make well-informed decisions, optimizing their lending and borrowing experience.

Q: How does the platform provide transparency and visibility in the lending process for all parties? A: We prioritize transparency, visibility, and regulatory compliance in our lending process. By storing all loan information on the blockchain, integrating KYC/AML tools, and presenting clear details on loan terms, interest rates