How Zend.fi Works
Fixed-Term Loans with Zero Liquidation Risk
Each loan is structured with a predetermined term and repayment schedule. Borrowers know exactly how much they need to repay and when, ensuring complete predictability with no margin calls, no liquidation risks, and no hidden fees.
Collateralization with Built-In Protection
When a borrower locks in collateral (ETH or BTC), the lender not only funds the loan but also sells the borrower a put option. This means the borrower effectively has a deeply in-the-money call option, ensuring they can always reclaim their collateral at a known price and date.
Competitive Marketplace for Best Rates
When borrowers submit loan requests to our marketplace, lenders compete to offer the best rates. The lender not only provides the loan but also purchases a put option from the borrower, creating a complete financial package that benefits both parties while driving down borrowing costs.
Choice at Expiry
At loan expiry, borrowers can exercise their option to repay the loan and reclaim their collateral. Alternatively, if market conditions have changed significantly, they may choose to keep the borrowed funds, effectively selling their collateral at the pre-agreed strike price through the put option mechanism.
