Liquidation/Loan Auction

Auction

Ventory applies the Dutch Auction to extend the loans duration and assist borrowers on keeping their assets as well as reduce the risks for lenders while the NFT price has high volatility.

As being a borrower, your loans are auctioned when:

• LTV exceeds 90%, and you fail to repay your loans on Grace Period (lasting 6 hours). At this point, Lenders have 2 options: either auction the loans or keep your NFT.

Once loans are under Auction process, the APY will keep rising upto 1000% until a new lender accept to lend you. As the APY reaches 1000% and no lender found, your loan is liquidated and collateral belongs to the lender.

Liquidation

Liquidation is a process in which collaterals are collateralized in order to pay down an outstanding debt position.

As being a borrower, your position will be liquidated when:

• LTV exceeds 90% and you cannot repay your loans on Grace Period (lasting 6 hours). Lenders refuse to get back your NFT as compensation.

• Fail to find new lenders during Auction (lasting 24 hours)

After Liquidation Process, borrowers keep the Borrow Amount, lenders keep the NFT.