Step 3: Fund a Loan Request

Here is how to fund a loan request:

1. Select a loan you want to fund from all loan requests and press the loan to get to the loan page.

2. Do your due diligence whether you want to fund the loan:

• The borrower can borrow 67% of the token value
• Mind that the token value might change and the borrower amount could get over 100%, here your capital might be in risk
• Mind the above especially on long term loans since the value of the token might change during the time
• Fund only loans, which collateral you know and might have followed the market behaviour

3. Fund the loan

• Press the "fund This Loan" Button"
• MetaMask should popup. Adjust the Gas to your own needs (default gas might be too high, you can set it lower)
• Mind that 0.01 ETH Funding fee is collected upon funding the loan
• Once the transaction is mined, refresh the page and you should see that the loan is on "Funded" state

Congratulations for funding a loan! The borrower must pay the loan accordingly to the instalments.

Failure to comply with an instalment on time, the borrower must repay an additional 1% of the loan amount as a penalty to the lender.

Failure to pay the loan, the lender can claim the collateral tokens to receive the tokens to sell them in the exchange. See wiki page: Claiming tokens upon Default.