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Borrower Guide

Loan Origination & Terms​

The borrower's journey on Lendscape begins with loan origination. This process involves several steps:

Getting Started​

  1. Profile Creation: Create a profile on the platform, providing necessary personal and financial information.

  2. Loan Request: Submit a loan request, specifying the desired amount, purpose, and preferred terms.

  3. Collateral Specification: Identify the tokenized real-world asset (RWA) you intend to use as collateral.

  4. Risk Assessment: Our AI-driven models assess your creditworthiness and the value of the proposed collateral.

Loan Terms​

Based on the risk assessment, the platform generates loan terms, including:

  • Interest Rate: Typically ranging from 20% to 35%, depending on risk profile
  • Loan Duration: Usually between 3 months to 3 years
  • Loan-to-Value (LTV) Ratio: Typically 30-50% of the collateral value
  • Repayment Schedule: Monthly, quarterly, or custom schedules available

Once generated, you'll review and accept the proposed terms.

Collateralization of Tokenized RWAs​

After accepting the loan terms, the collateralization process begins:

Asset Verification Process​

  1. Ownership Verification: The platform verifies your ownership of the tokenized RWA.
  2. Value Assessment: Our system determines the current market value of your asset.
  3. Eligibility Confirmation: We ensure your asset meets our collateral requirements.

Securing Your Collateral​

  1. Collateral Lock: You'll transfer the tokenized RWA to our Collateral Escrow smart contract.
  2. Overcollateralization: To mitigate risk, loans are typically overcollateralized, with the collateral value exceeding the loan amount by 50-70%.
  3. Collateral Monitoring: Throughout the loan term, the value of your collateral is continuously monitored using blockchain oracles.

Supported Collateral Types​

Lendscape currently supports the following types of tokenized assets as collateral:

  • SAFT (Simple Agreement for Future Tokens)
  • SAFE (Simple Agreement for Future Equity)
  • Tokenized equity
  • Vesting tokens
  • Other tokenized real-world assets on a case-by-case basis

Repayment and Default​

Repayment Options​

As a borrower, you are responsible for repaying your loan according to the agreed terms:

  • Regular Payments: Make payments (typically monthly) through the platform according to your repayment schedule.
  • Early Repayment: Options for early repayment are available, potentially with reduced interest.
  • Payment Methods: Support for various stablecoins and other cryptocurrencies.

Default Process​

If you're unable to meet your repayment obligations:

  1. Notification Period: You'll receive notifications and a grace period (typically 7 days) to rectify the situation.
  2. Resolution Options: During this period, you can make the overdue payment, restructure the loan, or add additional collateral.
  3. Liquidation Process: If unresolved, the platform initiates the liquidation process:
    • The collateralized asset is auctioned to recover the outstanding loan amount.
    • Any remaining value after covering the loan, interest, and fees is returned to you.

Default Triggers​

The following situations can trigger default procedures:

  • Missed Payments: Failure to make a scheduled payment by the due date.
  • Collateral Value Drop: If the value of the collateralized asset falls below a predetermined threshold (e.g., loan-to-value ratio exceeds a certain percentage).
  • Repeated Late Payments: A pattern of consistently late payments, even if eventually made.
  • Violation of Loan Terms: Failure to comply with other specific terms of the loan agreement.

Loan Management Dashboard​

As a borrower, you'll have access to a comprehensive dashboard that provides:

  • Real-time view of loan status
  • Payment history and upcoming payment schedule
  • Current collateral value and health factor
  • Options to add collateral or make early repayments
  • Notifications for important events (payment due, collateral value changes)

Frequently Asked Questions​

What happens if my collateral value increases?​

The increased value provides additional security for your loan, but does not automatically change your loan terms.

Can I use multiple assets as collateral?​

Yes, Lendscape supports using multiple tokenized assets as collateral for a single loan.

What if I need to extend my loan term?​

You may request a loan extension, which will be evaluated based on your payment history and current collateral value.

Are there any fees besides interest?​

Lendscape charges a small origination fee (typically 1-2%) and may have additional fees for specific actions like early repayment.

Can I get a larger loan amount later?​

If your collateral value supports it, you can apply for additional funding after establishing a positive repayment history.

For additional questions or support with the borrowing process, please contact our support team.