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  • overview
    • Introduction
    • Architecture and Roles
    • Fireblocks Embedded Wallet
  • Features
    • Supported Networks and Tokens
    • Organization Account and Wallet
    • Passphrase and MPC Key
    • Borrowing and Lending
    • Repayment
    • Liquidation and Physical Delivery
    • Adding and Removing Collateral
    • Withdrawal
    • Settlement Mechanism
    • Transaction Fee
  • Security
    • Security Overview
    • Account and MPC Key Share Security
    • Cloud Infrastructure Security
    • Full Key Recovery
    • Disaster Recovery for Fireblocks Key Share
  • Hypernative 24/7 On-Chain Security Analysis
  • Smart Contract Audit
  • Tutorials
    • MPC Key Generation
    • Wallet Creation and User Invitation
    • Joining Organization
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  • Repayment
  • Important Notes
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  1. Features

Repayment

PreviousBorrowing and LendingNextLiquidation and Physical Delivery

Last updated 1 month ago

Repayment

  1. Locate the Loan: Before the maturity date, borrowers can find the "Repay" button next to the associated loan in the Wallets -> Liability (Borrower) tab.

  2. Maturity Time: The exact maturity time is 00:00 on the maturity date plus one day, coordinated in UTC+0. For example, if the maturity date is January 30, 2025, the maturity time is 00:00 on January 31, 2025, UTC+0.

  3. Repayment Process:

    • Before Maturity: Borrowers can repay their loans at any time before maturity by following these steps:

      1. Approve the transfer of debt to the lender

      2. Call the smart contract to execute the transaction

    • After Maturity: If the loan is not repaid before maturity, the liquidation process will be automatically triggered.

  4. Smart Contract Execution: When the borrower initiates repayment, the smart contract:

    • Transfers the debt (principal plus accrued interest) from the borrower to the lender

    • Transfers the collateral from the lender's wallet back to the borrower's wallet

  5. Collateral Return: The collateral return is executed automatically by the smart contract based on the lender's pre-approval that was provided during the loan creation. The borrower does not need to wait for manual action from the lender to receive their collateral back.

  6. Transaction Monitoring: Both the borrower and lender can monitor the status of the repayment and collateral transfer transactions in the Transfers page.

Important Notes

  • The smart contract ensures that the collateral is only returned to the borrower after confirming the full repayment has been made.

  • The peer-to-peer nature of the repayment process means assets move directly between user wallets, not through an intermediary.

  • The TSI system sends reminder notifications to borrowers as the maturity date approaches to help them avoid late repayments.

  • If the borrower fails to repay by maturity, the liquidation process will be triggered automatically to protect the lender's interests.

  • If any issues arise during the repayment process, users should contact TSI support for assistance.

Repayment Flow
The Borrower Clicks Repay to Initiate Repayment Transactions
The Lender Transfers Collateral to the Borrower After Receiving the Repayment