The system will allow Makers to create new loan issuance, and allow Takers to engage the outstanding loan .
Maker, who is the lender of the loan. Usually the Foundation who wants to provide liquidity to token investors;
Taker, who is the borrower of the loan. Usually the token holders who want liquidity;
Timer Oracle, who is an external timer service provider that provides timing triggers to the loan contract.
Financial Service Providers have created loan instruments on the NUTS Technology Platform;
The diagram below depicts the process flow of the loan contract.
Maker creates new loan issuance using the selected loan instrument;
Maker deposits the borrowed token to the loan issuance;
Taker searches loan issuance in the marketplace and engages to the target issuance;
Taker deposits the collateral token. The borrowed token is available for withdrawal by the taker;
Taker pays back the borrowed token plus interest token; the collateral token is available for withdrawal by the taker.
If the maker fails to deposit the borrowed token in time, the loan issuance becomes unfunded;
If the loan contract expires with no engagement, the loan issuance becomes complete with no engagement and will not be available for further engagement;
If the taker fails to pay back the borrowed token plus interest, the loan issuance becomes delinquent.
Below are the states of a loan contract.
Initiated: The loan issuance is created;
Engageable: The maker has deposited the borrowed token so that the loan issuance can be engaged by taker;
Active: The taker engages the loan issuance;
Complete Engaged: The taker pays back the borrowed token in time;
Unfunded: The maker fails to deposit the borrowed token in time;
Complete not Engaged: The issuance expires with no engagement;
The taker fails to deposit the collateral token in time;
The taker fails to pay back the borrowed token in full in time.