Pay Off a Loan
Borrowers should pay off loans in full prior to the due date and time (also referred to as the maturity date and time) as agreed upon at the inception of the loan.
There is no "prepayment fee" levied on the borrower if they would like to pay the loan off in full earlier than (for example - three days before) the due date and time.
Once a loan is repaid in full in a timely manner per above, the protocol will return assets (Vault or Single NFT) to the borrower.
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 on the Arcade.xyz platform, borrowers should navigate to My Profile and select the My Loans section.
- After selecting
My Loans,borrowers should then select the loan to repay.
- Once the loan is selected, the detail page for the loan should appear showing the asset(s) and the terms of the loan. Borrowers should select
Payoff Loanon this detail page.
Protocol Functions for Payoff
After a user selects
Payoff Loan,this will prompt two wallet transactions that will complete the payoff action on-chain to approve access to the payoff token and then another to pay off the loan with the approved token.
- After selecting
Payoff Loan, a wallet transaction will pop up (Function: Approve) to confirm the token spend. Users should confirm this transaction in their wallet.
A notification will appear in the app that the token spend is approved.
Approve: this function approves the token spend in the user's wallet to pay off the loan.
- Once the token spend is approved on chain, a success notification will appear in the app confirming the transaction.
- After the token spend is approved, the user must select
Payoff Loanon the detail page.
Once this is completed, a second transaction will appear in the user's wallet. This transaction is the Contract Interaction to Repay the loan with the protocol in order to repay the loan.
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.
- After the transaction is complete on chain, there will be a success notification in the app.
The loan should update to a Repaid status in the My Loan Activity Page. The loan has been successfully repaid!
Updated 6 months ago