What assets can I borrow?
Initially, loans will only be available in ERC20 tokens. However, we have ambitious plans to expand our product to include fiat currencies starting with USD and EUR via stable coin implementation. As soon as we complete development of cross chain solution based on atomic swaps there will be assets from other blockchains available, including Bitcoin, EOS etc.
What is the interest rate on my loan?
The interest rate charged on your loan will be set by the lender who contributes the capital. This rate is approved by you upon acceptance of the lending agreement and is fixed for whole period of your trade. The interest rate offered on Nitrogen network is subject to change and is influenced by market conditions, volatility and user behavior.
Can I refinance my loan?
At this time we do not offer refinancing options for any loans. There are no penalties associated with early repayment, however be aware that you will be subject to a full interest repayment even if you repay your loan early.
Are there any origination or prepayment fees?
Each fee has a variable (percentage) and a fixed component. The fixed part of each fee is nominated in Ether and is converted into the asset you are transferring.
Currently there are four basic service fees:
- Trade arrangement fee. You pay this fee when you enter new trade on the network. 0 fee on inception!
- Spread fee. (Interest fee). If you are a lender you pay this fee calculated from the interest you earn from the trade. 0 fee on inception!
- Default fee. Borrowers pay this fee if they fail to repay the loan in time. You pay only our costs on inception!
- Margin call fee. Borrowers pay this fee if their collateral value falls below critical level and the trade is terminated. You pay only our costs on inception!
How does a Nitrogen loan work?
1. Lender or Borrower place an order, specifying an asset and loan terms (interest rate, maturity, collateral and LTV). Upon order creation lender settles loan asset or borrower settles collateral to the smart contract.
2. As soon as counterparty matches an order the loan transaction is initiated. Lender's asset is transferred straight to borrower, borrower's collateral is stored in the smart contract until the trade maturity.
3. At the trade maturity if borrower pays out loan and interest in full, his collateral is returned to his wallet automatically.
What assets may I use as a collateral?
In order for an asset to be used as collateral on the Nitrogen network it must be a Ethereum-based asset (ERC20 token or Ether). Having said we are working on cross chain solution based on atomic swaps which will allow to pledge BTC, EOS and assets from other blockchains which support scripting. Digital assets will be onboarded based off community demand. Please email email@example.com to request the onboarding of a new asset class.
What is the minimum and maximum amount I can lend or borrow?
Currently there are no minimum or maximum amounts set. However, be aware of applicable fees and make sure your commissions constitute a reasonably small fraction of your transaction value. For more information on fees please visit fees calculator page
What can I use a Nitrogen loan for?
You can borrow assets for funding and liquidity purposes or to sell short if you believe an asset will depreciate in price, or you could raise some liquid in Ether e.g. for participating in a token sale. Basically you can use a loan for any personal or business purpose.
Is Nitrogen loan secured or unsecured?
All loans on the Nitrogen network are secured. This means that the borrower provides collateral for the loan. This collateral is securely stored within the smart contract.