Application

Fixed Interest Rate

Interest rates are set by the interest rate curves, which are predefined by the platform.

The interest rate curves are predefined. These are standard, upward-sloping yield curves, meaning the longer the loan term, the higher the APY.

The concrete interest rate for a loan depends on:

  • The loan term—the longer the loan term, the higher the interest rate.
  • Trust score—every borrower is automatically trust scored. Every borrower can try to increase his trust score by submitting additional information. The better the trust score, the better the interest rate.
  • The underlying asset—different assets have different predefined yield curves.

The lender receives the interest rate, as defined via the SmartCredit.io yield curves (standard upward-sloping yield curves).

The borrower pays:

  • The interest rate for the lender
  • The platform fee is 0.5% of the loan principal (see the Revenue Model)
  • The loss-provision fee is accumulated into the Loss-Provision Fund and used in adverse situations

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