A loan extension (or rollover) is an option for borrowers to extend the terms of their active loan on the Arcade.xyz platform.
Borrowers with active loans can choose to extend their loan with any lender that makes an offer!
All active loans on Vaults or Single NFTs are open to extension offers by default on the platform.
Loan extension offer terms (Principal, Repayment, Interest Rate, Duration) are flexible - any or all terms can match or differ from the active loan.
Please note: If a borrower repays an active loan in full, the loan cannot be extended and the borrower must start a new loan.
- Borrowers can receive extension offers on collateral (Vault or Single NFT) in an active loan from any lender.
- After lenders make extension offers on an active loan, borrowers can choose an extension offer from a lender.
- To facilitate the extension, the borrower then must pay the full interest amount on the original loan and must have [active loan (principal + interest) - new loan principal] amount in their connected wallet. The borrower must then approve a withdrawal of the difference amount from their connected wallet.
- Once the above transactions are complete, the original lender is made whole and both ERC-721 promissory notes (borrower and lender) from the original loan are burned.
- The loan extension is complete and new ERC-721 promissory notes (borrower and lender) are minted by the protocol and distributed to each party.
Screens coming soon!
Updated 6 months ago