Loans
Process
Pre-approved Borrowers
Loda Cicero will build an initial list of pre-approved borrowers. Any of these borrowers can create a loan at any time that directly goes to ILP voting and on being approved, a JLP is launched. If for whatever reason these borrowers are negligent in their duties of repaying the loans, or other, the DAO may choose to remove this whitelisting.
Approval
Once a new JLP is launched. JLP investors are allowed to invest in the JLP based on their reputation. The better the reputation, the more they are allowed to invest in the JLP.
Reputation
Reputation is based on two reputation indexes:
Auditor Experience Value (AEV)
AEV is calculated by the total JLP value repaid/or not repaid.
Auditor Accuracy Value (AAV)
Tracks the success of a JLP investor
Activation
Once the loan is activated the SLP covers the rest of the loan principal needed. If the JLP threshold is 30% of the principal then SLP will add the remaining 70% and the loan will be activated. At this point, the borrower will receive the funds in the nominated wallet address.
Repayment
Repayment Size and Duration
As part of the borrower terms, repayment duration and repayment value will be defined. The borrower has to adhere to this repayment schedule.
Hierachal Repayment Order
The repayment happens in the following order.
SLP is paid its principal amount
SLP is paid its interest
ILP is paid its fees
Treasury is paid its fees
JLP is paid its principal
JLP is paid its interest
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