How much can I borrow?
The amount you can borrow depends on the value of the blockchain assets you have to pledge as collateral. Borrowing offered through the Nitrogen platform is always overcollateralized, which means that you can never borrow more than the value of the asset you post to the contract as collateral. Currently there are no hard caps set on the amount of assets you may borrow. Loan values and availability are subject to change at any time.
How quickly do I get my loan?
All blockchain-based loans are initiated the moment both counterparties (lender and borrower) agree to the loan terms, this means as soon as your order is matched and counterparty has settled the assets, or you match someone's order and settle assets to the smart contract from your side, you will receive your loan.
What is the minimum and maximum amount I can submit in an order?
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.
How do I submit a new order?
1. Go to "Create new order" form in the right part of the platform and select side: lend or borrow.
2. Select loan asset and its amount, specify desired annual interest rate.
3. If you want your order to match partially, select corresponding flag and set minimum loan value for partial matching.
4. Pick eligible collateral for your order and specify haircut (discount) on its value, make sure your initial haircut is greater than 23.5% for ETH and 32% for other ERC20 tokens.
5. You may specify collateral groups instead of particular collateral asset to increase the possibility of matching of your order. Currently we have implemented following groups: Liquid (ETH, BTC), Stable (USD, EUR, GBP), ERC-20 liquid (high liquid tokens), ERC-20 low liquid (low liquidity tokens).
6. Select desired maturity, order expiry, and decide if you want to terminate the trade automatically on borrower's default
Next, hit the Place New Order button and proceed with final steps of order creation and blockchain settlement.
That's it! You've successfully placed a new order!
What is partial matching?
When submitting an order user may specify if he wants to match order partially or in full. Partial matching means there can be several takers of one order, each taker will fill part of the order and eventually there will be many to one relationship between an order and corresponding trades.
For your order to match partially you need to specify the minimum amount for partial matching. This amount may be anywhere between 10% and 50% of the loan amount. These boundaries are set according to the following logic:
There should be some feasible minimum amount set, otherwise there is a risk that lender ends up with a lot of trades with different collateral assets. This could lead to inconvenience for the lender in case of possible defaults or margin calls on some of the many possible trades. Hence the 10% minimum.
Minimum amount for partial matching can not be greater than 50% because otherwise the remaining part of the order won't be matched. Consider an example: if user sets minimum amount to be 60%, one trade can take out 60% of the loan with 40% remaining in the order, in this case no one else will be able to fill the order completely as the minimum amount of 60% is greater than the remaining 40%.
If you want your order to match partially, select corresponding flag and set minimum loan value for partial matching:
What is multiple collateral?
As a lender you may specify collateral groups instead of particular collateral asset to increase the possibility of matching of your order.
Currently we have implemented following groups: Liquid (ETH, BTC), Stable (USD, EUR, GBP), ERC-20 liquid (high liquid tokens), ERC-20 low liquid (low liquidity tokens).
Collateral groups imply that any collateral may be chosen from that group when borrower accepts your order and creates a trade.
To select collateral groups, navigate to the create new order sidebar and when selecting collateral assets as a lender select desired collateral groups:
After that hit OK button and specify initial haircut for each group, make sure your initial haircut is greater than 23.5% for liquid groups (Liquid, Stable, ERC-20 liquid) and 32% for other ERC20 tokens (ERC-20 low liquid group).
How to set proper maturity?
You can specify any maturity you want depending on your needs. We have a set of predefined values to simplify order matching. However, be aware of the fact that maturity is an approximate value, since we calculate all maturities within the blockchain in Ethereum blocks. Ethereum Mainnet block length is about 15 seconds.
What is auto-closeout flag parameter on the order?
Users can select the auto-closeout flag which determines if the transaction will be terminated automatically in case of borrower’s default. When this flag is not set, the lender will have to perform the default procedure manually by navigating to the corresponding trade and clicking default button.
Why do I sign 3 different transactions in Metamask when placing an order?
We've implemented approach in which users record the terms of future transaction to blockchain before assets settlement and commit to these terms by signing the transaction with their private keys. This allows manipulations with users assets to be avoided, but means that users need to confirm the following transactions:
1) Order creation in the blockchain
2) Approval of transfer to the ERC20 token contract
3) The actual settlement of assets to the contract.
How do I cancel an order?
You may cancel your order at any time after it has been submitted to the blockchain. Be aware that you will pay Ethereum transaction fees for the cancellation. To cancel an order:
- Go to "My transaction" page, choose the tab you need: "Lend" or "Borrow" and find the necessary order in a list
2. Click on it or use "Show details" button and open pop-up window with all the details
3. Find button "Cancel and withdraw" in the bottom and follow the steps onwards.
How long does it take for my order to match?
It depends on the parameters of your order. In general, orders with higher payment rates and higher haircut values will tend to be executed slower. Market forces are at play here. In later releases, we will add a fully automated matching engine with an auction mechanism, which will significantly reduce the time needed for your order to match. You can also match any active order in the Funding book manually if you wish.
Can my order get expired?
Yes. Once the order has been sent to the blockchain, in case you fail to set assets to the order within one hour of its creation, the order will be canceled automatically by the system.