Borrowers can get an instant loan of 20%-50% floor price of their NFT in SOL for 7 to 14 days. Borrowers have to repay the loan back + accrued daily fees within the next 7-14 days. When the borrower initiates the loan, the protocol counts the first day. Fee bump will then occur every 24H from loan inception.
TL;DR Flip for a short time, Repay, Get away with a super-low fee.
The interest rate offered to the borrowers at the time of the loan is dependent on the utilisation rate of the aggregated lending pool at that time. The simplified interest model for Flip loans is available here.
We encourage borrowers to connect their discord account on our app in order to receive important notifications regarding the status of their loans :
Loan creation notifications
Loan expiry (24H in advance) notifications
Grace period notifications
Executed liquidations notifications
Discounts for holders
Every Gnomie and every 10 Frakt points unlock 1% discount on lending fees for Flip loansso that
100 Gnomies = 1,000 Frakt points = free loans
Note that free/discounted loans will be capped in value. The higher the amount of $FRKX (upcoming IDO token) you stake the higher your cap on free/discounted Flip loans. The other utilities for the token are listed here
Liquidations for Flip loans
If the borrower doesn't repay his Flip loan before the end of the 7-14 days period, his collateral NFT will enter the 12H Grace period during which he can still repay the loan back + the interest + a 10% penalty. If he doesn't repay his debt during the 12h Grace period his collateral NFT will be transferred from his wallet to be liquidated in a raffle