Before we proceed, we want to remind you that using flowty involves risks and can have adverse outcomes for Borrowers, Lenders, Owners, Renters and other platform participants. The following is not financial advice, and we ask and encourage you to consult a qualified financial advisor and tax expert to understand the full implications and consequences of using flowty.
Owner FAQ
What is MR DTV and how should I think of it?
As you are inputting terms for your rental listing, you might notice a “MR DTV” on the marketplace preview card (circled in green in image below). MR DTV stands for MomentRanks Deposit to Value.
MR DTV is simply the Deposit divided by MomentRanks’ estimated value of the underlying NFT. In other words, it is a quick way to measure how much coverage over your asset value (per MomentRanks’ valuation model) you have in the event that a Renter does not return your NFT.
Example:
If you list an NFT valued at $1,000 for rent and ask for a deposit of $1,200, your MR DTV would be 1.2x. Assuming the value of the NFT does not change, the deposit (before applicable royalties / fees) would give you 20% more than the value of your underlying asset.
In short, the higher the MR DTV, the greater the incentive for the Renter to return your NFT or the compensation to you if the Renter does not return your NFT.
How does a private listing work?
An Owner can opt in for a private listing and specify a wallet for a listing. ONLY the specified wallet will be able to rent the NFT. This can be a useful tool for groups or communities who would like to offer favorable rental terms to friends or community members.
How do I transfer an NFT from Dapper wallet to Blocto?
See Steps 1–8 from this NBA Top Shot blog post. These steps apply to any NFT that is in your Dapper wallet, not just NBA Top Shot.
It is not always easy to find the NFT that you want to withdraw from the Dapper wallet. Our friend Steve Veerman put together an awesome tool that you can use to find a specific NFT to withdraw from your Dapper wallet. Thanks, Steve!
Note: as discussed in Step 7 in the blog post, the first time you transfer an NFT from Dapper wallet to Blocto, there is a one-time 24-hour review period. Subsequent transfers will be instant.
What is the right rental fee for my listing?
The rental fee is entirely your decision and there is no “right” or “wrong” way to think about it. One helpful framework is to put yourself in the Renter’s shoes and consider what the Renter wants to accomplish with the rental and what that may be worth to them.
For the purposes of an NBA Top Shot challenge, it may make sense to view the rental fee as a percentage of the reward rather than of the NFT that is being rented out.
What is the right deposit for my listing?
If the Renter does not return your NFT before the end of the rental term, the refundable deposit (after applicable royalties / fees) will automatically be sent to your wallet. As such, the deposit should be thought of as an amount that you would be comfortable receiving instead of getting your NFT back from the Renter.
Some Owners may be comfortable with a deposit of the current market value. Others may prefer a cushion above current market value.
As part of the listing process, to the extent we have the information available, we will attempt to provide you with a 3rd-party valuation of your underlying NFT and a ratio (MR DTV) of the deposit to the value of the asset. The higher the ratio, the greater the incentive for a Renter to return the asset
What is the right duration for my listing?
While every situation is unique, it might be helpful for an Owner to consider the purpose of a rental and ensure the duration works well from the Renter’s perspective. As an example, if an NBA Top Shot challenge ends in 5 days, it might be attractive to a Renter to have 6+ days to return the NFT.
Always keep in mind that the longer the duration, the more likely an NFT is to drastically increase or decrease in value, which may alter a Renter’s desire to return the NFT.
Am I guaranteed to get my NFT back?
No. If the Renter returns the NFT before the end of the rental term, you will receive your NFT and keep your share of the rental fee. If the Renter does not return your NFT by the end of the rental term, you will receive your share of the refundable deposit instead of your NFT.
Please note that if the rented NFT increases in value during the rental term, it is possible that the Renter will choose not to return the NFT.
What are the fees associated with flowty rentals?
Read more about fees here
Renter FAQ
What is MR DTV and how should I think of it?
As you are browsing the flowty rental marketplace, you might notice a “MR DTV” on the marketplace card (circled in green in image below). MR DTV stands for MomentRanks Deposit to Value.
MR DTV is simply the Deposit divided by MomentRanks’ estimated value of the underlying NFT. In other words, it is a quick way to measure how much coverage over the Owner’s asset value (per MomentRanks’ valuation model) the Owner has requested via deposit.
Example:
If an NFT is valued at $1,000 and the owner asks for a deposit of $1,200, the MR DTV would be 1.2x. Assuming the value of the NFT does not change, the deposit (before royalties) would offer the Owner 20% more than the underlying asset value.
In short, the higher the MR DTV, the greater the incentive for a Renter to return an NFT or the compensation to the Owner if the Renter does not return an NFT.
Why would I rent instead of buy?
Buying an NFT that is only needed on a temporary basis or for a specific purpose exposes a user to significant valuation swings and material transaction fees when purchasing / selling the asset.
Renting on flowty allows a user to determine the exact cost of owning an asset for a temporary period, with no risk on the value of the underlying NFT and no need to deal with significant transaction fees and royalties based on the value of the NFT.
Why do I need a refundable deposit?
In a flowty rental transaction, the Renter takes full ownership of the underlying NFT to ensure that the Renter can utilize the NFT however they would like to. There is, therefore, no way for flowty to prevent the Renter from selling or transferring the NFT.
The refundable deposit serves two purposes:
- Incentivize the Renter to return the NFT
- Compensate the Owner in the event that the Renter does not return the NFT
What if I don’t have the liquidity for a refundable deposit?
Renters can use the P2P NFT loan feature on flowty to get short-term liquidity for a refundable deposit. Read more about loans here.
I submitted a withdrawal from my Dapper wallet to my Blocto wallet but the NFT still hasn’t been transferred, why?
See Steps 1–8 from this NBA Top Shot blog post for an overview of the process for withdrawing NFTs from Dapper wallet to Blocto. These steps apply to any NFT that is in your Dapper wallet, not just NBA Top Shot.
Note: as discussed in Step 7 in the blog post, the first time you transfer an NFT from Dapper wallet to Blocto, there is a one-time 24-hour review period. Subsequent transfers will be instant.
How do I transfer an NFT from my Blocto wallet to my NBA Top Shot account (Dapper wallet)?
See Step 9 in this post from the Dapper Labs team
It’s a pain to find the right NFT to withdraw from the Dapper wallet (limited search / filter capabilities), any tips?
Our friend Steve Veerman put together an awesome tool that you can use to find a specific NFT to withdraw from your Dapper wallet. Thanks, Steve!
If an NBA Top Shot challenge, for example, is delayed and I need to return the NFT before I can actually use it, can I get a refund or can I extend my rental?
Unfortunately, not. Once an NFT is rented, the terms of the rental are locked and cannot be changed.
If I am unable to transfer the rented NFT back to my wallet in time or otherwise unable to return the NFT, is there a way to get an extension?
If you are unable to or forget to return the rented NFT, your refundable deposit will be forfeited. It is possible that you are unable to return the NFT due to technical issues related to the Flow blockchain, Blocto or flowty.
What are the fees associated with flowty rentals?
Read more about fees here
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