Kyoko
  • Kyoko Introduction
  • HOW IT WORKS
    • Peer-to-Pool NFT Lending Platform
      • P2P NFT Lending Introduction
        • As Lenders: Earning Interest
        • As Borrowers: Get Instant Loans
        • NFT as the collateral
        • NFT Price Discovery
      • Who can create the pools?
        • The Blue-Chip Pools
        • The Shared Pool
      • Risk Models: Health factor or Time-based
        • Risk Framework
        • Dual Rates
        • NFT Risk Parameters
      • Pending Liquidation
        • Auction liquidation
        • Bad Debt
      • Security and Audits
    • Cross-Chain GameFi Assets Lending(CCAL)
      • How to use Cross-Chain GameFi Assets Lending?
      • FAQ for CCAL
  • TOKEN
    • Token distribution
    • Understanding $KYOKO in P2P NFT Lending
      • Staking (Shared income)
        • Staking your $KYOKO
        • Claiming shared income
      • Voting
        • Vote Locking
        • Governance Mechanism
        • Snapshot
        • Proposals
    • Vesting
    • Stake
      • Liquidity Mining
      • How to start staking?
    • Business Model
    • Governance
      • KRCs
      • KIPs
      • Governance forum
      • Voting(Snapshot)
  • Roadmap
  • Security and auditing
  • Contact
  • DEPLOYED CONTRACTS
    • P2P NFT Lending
    • Cross-Chain GameFi Assets Lending(CCAL)
  • TEST
    • P2P NFT Lending testnet
    • Cross-Chain GameFi Assets Lending(CCAL)
  • COMMUNITY
    • Twitter
    • Telegram
    • Discord
    • Medium
    • Github
    • TERMS OF SERVICE
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  • For The Blue-Chip Pools
  • For Shared Pools

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  1. HOW IT WORKS
  2. Peer-to-Pool NFT Lending Platform
  3. Pending Liquidation

Bad Debt

For The Blue-Chip Pools

If there is a bad debt situation, part of the funds of Kyoko's Treasury will be used to repay the bad debts of the Blue-Chip Pools. Once the Blue-Chip NFT in the Blue-Chip Pools is liquidated and no one participates in the bidding in the auction process, the Kyoko Treasury will hold the bottom of this debt, using treasury funds as the Grant Fund to bid this Blue-Chip NFT.

Treasury income mainly comes from interest.

For Shared Pools

Pools‘ original liquidity will be used to repay the bad debts of the Shared Pool. Once the NFT in those Pools should be liquidated but no one participates in the bidding process, the Pools' liquidity will hold the bottom of this debt, using liquidity funds to repay the loss of principal and interest of debt NFT.

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Last updated 2 years ago

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