(re @louissignet : I've been thinking how would the market accept...) You mean like making minimum payments on a debt so you don't get your assets completely frozen?

Basically, you have to make your payments otherwise you lose your collateral.

When the market drops (housing crisis of 2008) the mortgages just went underwater (this just mean the value of the collateral was lower than the outstanding debt). People kept their homes if they continued paying.

Personally, I'm sticking mostly to duckpools when that goes full release. My brain hurts too much when I start micromanaging finances.

(re @louissignet : When the market drops (housing crisis of 2008)...) Ohhhh, now I see what you're saying. So your payments could still be lower than your value of collateral so you might continue to make payments even if collateral ratio is <100%

The payments are agreed at the beginning of the loan. You have to continue making those same payments.

What it does mean is that if the collateral ratio is <100. The asset doesn't get auto liquidated.

The borrower can only get the asset if the borrower doesn't make the stabel coin payments.

The borrower has to make a decision on wether to lose the colalteral or just continue making the payments.

(re @louissignet : What it does mean is that if the collateral ra...) Kirat has made some contracts that allow for this but not yet implemented

but would require off chain bot i believe

Just set the terms at the beginning. The only reason for liquidating would be missing the payment terms. There's no need to track price of the collateral during the loan period. That's the whole concept behind non-recourse loans.

I see what you are saying

How is this different from SigmaFi?

So there would be required periodic payments rather than one single repayment?

(re @User : So there would be required periodic payments r...) I mean, your term may be multiple payments or just one, that's between the borrower and lender.

Well then thats just how sigmafi works no?

The fact is that, if in the agreed time, no payment gets made, the collateral gets sent to the lender.

sigmafi doens't have auto liquidations in case of price drops?

No

Amazing

Its just set repayment amount before end of term

If failure to repay, lender can liquidate

all p2p

Collateral ratio is just a metric for lender to guage health at time of agreeing to lend

That's exactly non-recourse loans

(re @louissignet : The fact is that, if in the agreed time, no pa...) interest is already locked in the "contract" when its put up initially tho

It should be in bold letters at h1 in a hero on the webapge "*P2P Loans*: *No Forced Liquidation*"

That's super innovative

“*Crypto-Friendly Loans*: No Automatic Liquidations”