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.