Collateral will be locked at the time the order is matched.
Collateral will be released at the time the loan is liquidated or closed.
The collateral for the loan will be released to Borrower’s Address if the loan is closed. In case of liquidation, see Section 4 for more details
Collateral Price will be equal to the TomoX average price of all the trades (price * amount) in the previous epoch (called market price) by the following formula:
Pn,Vn: Price and Volume of trade #n
The collateral will be automatically liquidated when either of the following events occur
The market price of the collateralized asset falls to be below the Liquidation Price. In this case, the entirety of the collateral will be released to the Lender’s Address
2. The Borrower defaults on the loan:
If the Borrower is unable to pay back the entirety of the loan, the Liquidated Collateral released to the Lender is calculated as follows:
The Value of The Liquidated Collateral = Liquidation Rate * The Value of The Loan + Interest
The collateral released to the Lender’s Address is either equal to Liquidated Collateral or in its entirety, whichever is smaller. The unliquidated collateral, if any, is released to the Borrower’s Address
Liquidation Rate: 110% (By default)
Liquidation Price = MCP * LR/DR
LR : Liquidation Rate
DR: Collateral Deposit Rate
MCP: Market price of the collateralized asset at the time the trade is created.
The Liquidation Rate is set/adjusted by the Moderator.
Base token (e.g. USDT): The asset that the Borrower wants to borrow or the asset that the Lender wants to lend
Term (days) (e.g. 7, 14, 30 days): The period over which the Borrower wants to borrow or the period over which the Lender wants to lend
Collateral (e.g BTC): The asset that the Borrower will deposit as a security for the loan or the asset that the Lender accepts as security for extending the loan
Interest Rate (annually, e.g. 10%): The amount above the principle that the Lender charges the Borrower or the amount above the principal that the Borrower is willing to pay the Lender for the loan. The interest rate is set by the Lender/Borrower at the time the LEND/BORROW order is created.
Amount: The quantity of the base asset that the Borrower wants to borrow or the quantity of the base asset that the Lender wants to lend.
All orders: Displays all orders - open, filled, canceled, and rejected
Open orders: All unmatched orders
Filled orders: All fully matched orders
Partially filled orders: Any matched order that is only partially filled
Rejected orders: Any order that is underfunded and cannot pay trading fees or if the balance is under the value of the order
Canceled orders: All Open/Partially Filled orders that have been manually canceled
An order book is an aggregate list of the number of LEND and BORROW orders that have been placed at a particular term for a base token.
If an open LEND order has the same interest rate and the same term with an open BORROW order, the two will be matched together to create a trade.
The status of each order will be updated from “Open” to “Filled” or “Partially Filled”. A partial fill is a loan execution where some but not all of an order is filled at the desired interest rate.
The collateral for the BORROW order will be locked in a 0x11 address.
The matched amount of the base token in the Lender’s address will be transferred to the Borrower’s Address.
In addition to repaying the principal, or original amount borrowed, the Borrower has to pay interest to the Lender.
The interest is calculated as follows
F: The original amount borrowed
T: Term (days) (e.g. 1 days, 14 days, 30 days …)
R: Annual interest rate
Prepayment is the early repayment of a loan by the Borrower. No partial repayment is allowed.
If the Borrower decides to pay off the loan early, aside from the normal interest he has to pay until that point, he will be charged a prepayment penalty (which is equal to half of the interest he would have had to pay from that point till the maturity date).
The prepayment interest is calculated as follows:
F: The original loan amount
T: Term (days) (1 days, 30 days …)
T1: The number of days borrowed.
R: Annual Interest rate
The status of a trade will be updated from “Open” to “Liquidated” if:
The market value of the collateral falls to the liquidation value (see Section 4. Liquidation for more detail), or
The Borrower fails to repay the loan by the due date
The status of a trade will be updated from “Open” to “Closed” if the Borrower repays the loan by the due date.
Open trades will be scanned and processed at every 100th block of every epoch.
The job will perform the following:
8.2.1. Recall excess
Recall Rate: 200% (By default)
By default, TomoX will support recall excess automatically.
Currently, TomoX does not support recall excess manually.
The collateralized asset will be recalled as an amount to the Borrower’s wallet if the market price of the collateralized asset rises to be above the Recall Price.