Note Selling
After the Note Originator has created a Promissory Note on a P2P Marketplace, he can go to MetaStreet and sell that note at any time, realizing a profit (or loss) on his investment, but getting exit liquidity either way. This allows the Note Originator to quickly recycle capital and originate many more Promissory Notes.
Only Promissory Notes backed by supported collections will be saleable on MetaStreet.
After the user connects a wallet, he will see all of the (approved) Notes in his wallet, along with each Note detail (maturity, principal, APR, etc...) along with the price MetaStreet would pay for the note at this point in time. After adding a Note into the Cart, the user can see the delta between holding the Note through maturity versus selling to MetaStreet right now.
Elapsed term: amount of days the Note has been outstanding
Implied APR: implied yield to the user if he sells the Note to MetaStreet
Implied vs Originated APR: Delta between the APR of the originated Promissory Note vs the implied APR to the Note Originator for selling the Note to MetaStreet today. If negative, this means MetaStreet requires a higher APR for the Collateral today than what the Note Originator obtained.
Profit/Loss: Total amount earned in excess of the original capital provided for the Promissory Note
Total Sale Proceeds : Total Proceeds provided by MetaStreet to the Note Originator
By selecting multiple Notes, the Note Originator can see the aggregate profit / loss as a result of selling his notes.
Keep in mind that there is a specific amount of liquid capital available in the Vault to buy these Notes - visible at the top right of the Sell Note page. If there is less liquidity available in the pool than what a Note Originator's notes are worth, then the Note Originator cannot sell the notes.
Once a Note Originator has determined which Notes to sell, he will need to give approval (only the first time) for MetaStreet to interact with the Notes.
If the Note Originator wants to deposit the proceeds from selling the Note into the Capital Vault, he can also complete this action in the same transaction (saving on gas fees). This is a popular way to continue earning yield, possibly in excess of what the Note Originator was earning on the individual Note (if depositing into the Junior Position), and from a diversified portfolio of Notes rather than a single one.
If the Note Originator does choose to deposit proceeds back into the Capital Vault, he will see his new Capital Vault shares on the "Portfolio" page.
Last modified 9mo ago