Repaying a loan is a straightforward process on Arcade.xyz. Borrowers can repay an active loan (repayment amount) or they can also choose to extend their loan.
Loan extensions enable borrowers to roll over their active loan with a new offer from any lender. To extend a loan, borrowers must pay the full interest on their active loan and any difference between the new and old principal amounts - see Loan Extensions for more.
Once a loan is repaid in full before the due date and time, the protocol will return assets (Vault or Single NFT) to the borrower's wallet.
Loan Repayment Timing
Loans should be repaid prior to the loan's due date and time rather than on the due date and time.
As an example, if a loan is due on September 20 at 9:00, the borrower should repay the loan in full prior to September 20 at 9:00.
In the event a borrower would like to repay a loan earlier than September 20 at 9:00, there is no prepayment fee levied on the borrower.
In order to repay an active loan, borrowers should proceed through the steps below:
- After connecting a wallet with an active loan to the Arcade.xyz platform, borrowers should navigate to Loans and select the My Loans option and select the loan they would like to repay. Borrowers should ensure that they have the repayment amount in their wallet before paying back a loan.
- Once the loan is selected, the loan detail page will appear displaying the NFT or Vault in escrow and the terms of the active loan. Borrowers should select
Payoff Loanon this detail page.
- After selecting
Payoff Loan, a Repay transaction will pop up to repay the loan from the borrower's connection wallet. Borrowers must Confirm the transaction in the connected wallet to pay back the loan.
Repay: this protocol function repays the loan through the protocol to the lender.
- Once confirmed, a notification appear in the app that the on chain transaction is pending and a success notification in the app once it has been confirmed on chain.
The loan will update to a Repaid status on the Arcade.xyz app and the loan has been successfully repaid!
Updated about 1 month ago