Happy days and happy lending here at Flowty.io! We are proud to announce we’ve surpassed $100,000 in Funded Loans for the 2023 Calendar Year; and while summer is coming to a close, things are heating up here!
NFT-Backed Loans are a reliable way to get liquidity without having to sell your NFT, and an option for those seeking passive income. For more information on NFT-Backed Loans on Flowty.io, check out our in-depth tutorial on how it works:
We’ve made the process for NFT-Backed Loans easy at Flowty, but it’s important to be aware of the possible risks—whether you’re listing as a Borrower or Funding as a Lender.
Borrowers must remember:
Failure to repay the loan on time—whether because of insufficient funds, forgetfulness, or loss of access to your wallet—will result in the collateral NFT being sent to the Lender. Flowty does require an email address so you’ll get notifications before the loan’s maturity.
To the extent possible, we will provide advanced notice for any events affecting the Marketplace, including but not limited to: issues with Flow blockchain, Blocto, or the Flowty platform. However, we encourage Borrowers to use the automatic repayment option so as not to worry about technical or logistical issues.
The only way to have your NFT returned is to repay the loan. Should there be an unexpected need to regain control of your NFT, repaying the loan early is the only way to reclaim your NFT.
Lenders must remember:
There is always the possibility that the collateral NFT loses value during the duration of the loan. Lenders should ensure that the interest rate and LTV% adequately compensate for the risk taken by funding the loan.
If you have yet to Borrow or Fund a loan, or if you feel intimidated by the process, take a look at some of our resources on NFT-Backed Loans: