Escrowed Token Collateral - FAQ

What assets can a Borrower post as collateral?
A Borrower can post any ERC-20 or ERC-4626 token as collateral, provided that the token has been whitelisted (enabled) by the Arbiter.
How is the ERC-4626 tokenized vault standard supported?
ERC-4626 is supported in the case where a Borrower wants to post escrow token collateral conventionally. 
Can a Borrower post collateral as security for more than one Line of Credit facility?
This isn't yet a supported feature.  Any collateral deposited by a Borrower can support n individual credit lines within a single Line of Credit facility.
A Line of Credit is a single lending facility for a single Borrower. The Borrower can draw down on any number of individual credit lines made available by any number of Lenders at any interest rate and denominated in any ERC-20 token.
How can a Borrower manage its collateral ratio?
A Borrower can see and update its collateral ratio at any time and can add, or withdraw, collateral as long as the minimum collateral ratio is maintained.
How can I see the collateral ratio?
This is visible in the app and can be updated by anyone at any time.
How can I see the value of collateral posted by a Borrower?
This is visible in the app.  It uses the Chainlink Oracle and can be updated by anyone at any time.
How can a Borrower withdraw any remaining collateral after fully repaying its debt?
Any remaining collateral is available for the Borrower to withdraw as soon as the status of the Line changes to repaid.
When and how would a Borrower's collateral be liquidated?
The Arbiter can choose to liquidate the collateral of the Borrower for the benefit of Lenders should the collateral ratio fall below the minimum required or due to some other covenant breach or if debt remains unpaid at the expiry date of the Line.
Revenue-Based Lending FAQ
Repaying Debt
Last modified 2mo ago