Basic Working of KiyoFi

Not a Final Page just for reference

KiyoFi operates similarly to other P2P lending platforms, but with added advantages. It guarantees lending gains for lenders and for the borrowers KiyoFi eliminates time limits, and offers benefits such as real-time notifications, the ability to add liquidity to loans at any time to prevent liquidation, and collateral management based on your confidence and market predictions for the token.

Case 1: On-Time Repayment If the borrower repays the loan before the threshold is triggered, the borrower receives the collateralized token, and the lender is repaid the full lent amount along with the agreed-upon fees. This ensures both parties fulfill their commitments, and the transaction is completed smoothly.

Case 2: Failure to Repay Fees If the borrower does not repay the fees on time and the token value stays above the threshold, the unpaid fees accumulate monthly. Once the accumulated fees approach the value of the collateral, the loan will be automatically liquidated, safeguarding the lender’s investment.

Case 3: Collateral Drops Below Threshold If the value of the provided collateral falls to the threshold, the loan is automatically triggered, and the collateral is liquidated. This protects lenders from potential losses, ensuring that the loan remains secure.

Collateral management is dynamic, allowing lenders to base their decisions on market confidence and predictions, further reducing risk and maximizing returns.