NUTS Platform Docs
1.0.0
2.5.02.0.01.0.0
1.0.0
2.5.02.0.01.0.0
  • Welcome to NUTS Finance!
  • Foreword
  • Background
  • Project Definition
  • Use Cases
    • NUTS Finance - Financial Instruments
    • NUTS Finance - Issuance
    • ACoconut - Loan Contract
    • ACoconut - Lockup Contract
    • ACoconut - PIPE Contract
    • ACoconut - ESOP Contract
  • Non Functional Requirements
  • Architecture Design
    • Domain Model
    • Interaction - Instrument Management
    • Interaction - Issuance Creation
    • Interaction - Issuance Engagement
    • Interaction - Token Transfer
    • Interaction - Timer
  • FAQ
  • Development Plan
  • API Reference
  • Appendix
    • Appendix A: Key Terms
Powered by GitBook
On this page
  • Use Case Description
  • Actors
  • Preconditions
  • Process Flow
  • Main Process Flow
  • Alternative Process Flow
  • Loan States

Was this helpful?

  1. Use Cases

ACoconut - Loan Contract

A financial instrument that provides liquidity for investors or allows foundations to earn interests on excess capital.

PreviousNUTS Finance - IssuanceNextACoconut - Lockup Contract

Last updated 5 years ago

Was this helpful?

Use Case Description

The system will allow Sellers to create new loan issuance, and allow Buyers to engage the outstanding loan .

Actors

  • Seller, who is the lender of the loan. Usually the Foundation who wants to provide liquidity to token investors;

  • Buyer, 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 information to the loan contract;

Preconditions

  • Financial Service Providers have created loan instruments using the NUTS Technology Platform;

Process Flow

The diagram below depicts the process flow of the loan contract. The link to edit the diagram is .

Main Process Flow

  • Seller creates new loan issuance using the selected loan instrument;

  • Seller deposits the borrowed token to the loan issuance;

  • Buyer searches loan issuance in the marketplace and engages to the target issuance;

  • Buyer deposits the collateral token. The borrowed token is available for withdrawal by the buyer;

  • Buyer pays back the borrowed token plus interest token; the collateral token is available for withdrawal by the buyer.

Alternative Process Flow

  • If the seller 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 buyer fails to pay back the borrowed token plus interest, the loan issuance becomes delinquent.

Loan States

Below are the states of a loan contract.

  • Initiated: The loan issuance is created;

  • Engageable: The seller has deposited the borrowed token so that the loan issuance can be engaged by buyer;

  • Active: Buyer engages the loan issuance;

  • Complete Engaged: Buyer pays back in time;

  • Unfunded: The sellers fails to deposit the borrowed token in time;

  • Complete not Engaged: The issuance expires with no engagement;

  • Delinquent

    • The buyer fails to deposit the collateral;

    • The buyer fails to pay back the borrowed token in full in time.

here