Overview of Flowty Fees

  • If a loan is repaid by the Borrower (no transfer of ownership of underlying collateral), the royalty is returned to Lender
  • If a Borrower defaults (ownership of collateral is transferred to Lender), the royalty is sent directly to the creator of the collection
  • At no point does flowty have custody or control of the royalty
  • Flowty does not profit in any way from the royalty
Colors link multiple usages of the same metric
  • Flowty never takes custody of collection royalties — they are either returned to Lenders (repayment scenario) or sent directly to creators (default scenario)
  • APR is calculated as (365/Duration * Rate)
  • If a Borrower defaults (does not repay), the Lender receives the underlying collateral in lieu of a repayment
  • The Borrower receives the loan amount as seen in the Marketplace net of flowty’s transaction fee and collection royalty
  • Marketplace listings are presented from the Lender’s perspective (Borrower sees different metrics when adding a new listing to the Marketplace; see table above for detail)
  • The Borrower’s loan rate paid is higher than the loan rate in the Marketplace (the loan rate received by Lenders) because the Borrower receives funds net of the flowty transaction fee and collection royalty
  • The transaction fee is assessed at the time a listing is funded and is not contingent on a Borrower repaying (rather than defaulting on) a loan
  • a share of the Refundable Deposit if and only if a Renter defaults (does not return the rented NFT)
  • If a rental is returned by the Renter, the refundable deposit is returned to the Renter
  • If a Renter defaults (does not return the rented NFT before the end of the rental term), the refundable deposit is split between the NFT issuer / creator (at a variable royalty rate set by the creator) and the Owner
  • At no point does flowty have custody or control of the refundable deposit
  • Flowty does not profit in any way from the royalty
Representative Examples of Rental Fees / Royalties
  • Flowty never takes custody of Refundable Deposits — they are either returned to Renters (returned NFT scenario) or split between Owners and NFT creators (if Renter defaults — NFT is not returned)

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