With Credefi Finance 2.
04 Aug 2023, 19:10
With Credefi Finance 2.0 we will take full advantage of the decentralized nature of the blockchain with direct peer-2-peer finance, liberalizing the process of lending and borrowing by connecting interested parties worldwide directly without intermediaries.
Our platform is only an enabler.
The process will be structured as follows:
Once a project (loan request) is uploaded, the platform will perform a risk assessment and a review of the relevant legal framework. The analysis will first
ensure the project’s legal compliance and then measure its sustainability and probability of default, recommending a suitable interest rate that lenders should charge. The token holders will then have the option to invest directly in any proposed project they deem viable and profitable. One of the key advantages of Credefi is that the investments will be legally protected through a loan agreement designed by a team of professionals and an accredited financial institution registered in the European Union.
The design of the credit deal will be assisted by the partner financial institutions, increasing the security of the investment for lenders.
If the deal includes providing a real asset as collateral (e.g. a real estate), the collateral will be assigned to our partner financial institution and in the case the loan becomes non-performing, the institution will liquidate the collateral and return the proceeds to the lenders.
Credefi will use its proprietary algorithms to calculate and suggest loan parameters that are fair for both parties.
Furthermore, the Credefi community will be able to evaluate and customize the parameters in a decentralized mechanism believed to give the best outcomes. This means that any lender will be able to ignore all odds and finance a project if he believes in it. This is clearly NOT possible in the current financing system.
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