🔨Auctions

When a borrower defaults on a loan, the underlying asset is auctioned in order to recoup capital for the lenders in the pool. Below are some important details:

Auction FAQs

What is the format of the Auction?

• Fully on-chain English Auction

• Each bid triggers a deposit of the bid amount and reimburses the previously high bid

• If a bid is made in the last 10 minutes, the auction is extended for another 10 minutes

• A new bid must be 2% greater than the prior bid

What happens to the Proceeds of the auction?

• Capital is returned to the pool lenders in order to make them whole

• Any capital in excess of the original loan amount + interest/fees is returned to the borrower

• The lenders with the lowest Loan Limit (risk) receive capital first, then waterfalls up

How do I get my NFT if I win an auction?

A winner must go back to the auction page and claim the NFT in order to take possession of it