FAQ
Last updated
Last updated
What is the basis for calculating the Annual Percentage Rates (APR)?
The APR is calculated on a 30/360 year basis. This means that each month is assumed to have 30 days, and the year is assumed to have 360 days for the purpose of interest calculations.
What types of NFTs are allowed on the lending platform?
The platform only allows NFTs issued from one of Altr's NFT collections, generated by the . These NFTs must also have a recent valuation provided by the . Each NFT represents a physical luxury collectible stored in one of our partners' freeport facilities. Owning the NFT grants you the tangible right to redeem the physical asset it represents, not just a digital representation as is common with most other NFTs you might came across.
How often are the NFTs valuated?
The Price Index Oracle Committee reevaluates the NFTs every quarter. For each item from Altr's NFT collections, they provide an updated, market-realistic valuation expressed in USD.
Is there an early liquidation system?
No, there isn't an early liquidation system. The item valuation remains constant for the duration of the loan, based on the value given at the time of the borrow request. This provides a low risk for lenders, especially considering that the maximum loan duration is one year, and the NFTs are backed by real-world, stable assets. Additionally, the valuations provided by the committee are conservative, and the LTV ratios are sensible.
What are the permissioned functions within the protocol?
Certain functions in the protocol allow the admin to modify fees and loan terms. However, the admin does not have access to the fees, assets, or lent money, which are directly sent to the . Any changes to the destination of fees require a DAO vote from . All adjustable variables have safeguards and sensible default settings that the admin cannot override.
Will the platform always be managed by a centralized team?
Initially, the protocol will launch with closer manual oversight by the team, including direct access to permissioned functionalities. Over time, these administrative powers will be gradually transferred to Lucidao Governance.
How does the fee system work in the platform?
In Altr's lending platform, the fee structure is as follows:
Borrower APR and Lender APR: The borrower pays an Annual Percentage Rate (APR) to the system, while the lender receives an APR. The spread between the two serves as the platform's revenue.
Origination Fee: This is a percentage of the loan amount. A bracket system is employed, where higher loan amounts fall into brackets with lower fees.
Early Repayment Penalty: Repaying the loan before its term results in a penalty. This is in addition to paying less APR due to the shortened duration of the loan.
Late Repayment/Grace Period Fee: A grace period exists after the loan deadline during which borrowers can repay without risking liquidation. If payment is made during this period, a fixed percentage fee on the loan amount, in addition to the borrower APR, will be applied.
Liquidation Fee: Liquidators pay an extra fee.
Stablecoin Transfer Fee: Some stablecoins used may have transfer fees. Check the terms with the token issuer. As of now, the platform uses USDT, which does not have a transfer fee.
A more defined fee structure can be found .