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Goldfinch V1 Documentation
Goldfinch V1 Documentation
  • Introduction
  • Goldfinch Overview
  • Protocol Mechanics
    • Glossary of key terms
    • Borrowers
    • Auditors
    • Backers
    • Liquidity Providers
    • Leverage Model
    • Membership
    • Investor Incentives
      • Backer Incentives
      • Senior Pool Liquidity Mining
    • Unique Entity Check
    • Discussion of Fraud Resistance
    • Staking
    • GFI Token
    • Liquidity & LP Withdrawals
    • Default Process
  • Governance
  • Tokenomics
    • Token Launch FAQ
  • Unique Identity (UID)
    • For Users
    • For Developers
    • Unique ID FAQ
  • Borrower Communication
  • Investor How-To
    • Getting Started on Goldfinch
    • Verifying Your Identity
    • Participating in Callable Deals
    • Participating in the Senior Pool
    • Participating in Borrower Pools
    • Participating in Liquidity Mining
    • Claiming GFI Distributions
    • Accessing Borrower Communication Channels
    • Purchasing coverage with Nexus Mutual
  • Borrower Mechanics
    • Raising Capital through Goldfinch
    • Goldfinch's Capital Providers
      • Sample Backer Economics
    • Goldfinch's Borrowers
      • Template Borrower Deal Structures
      • Borrower Case Study
    • Structure and Legal Considerations
      • Cash in and out of Goldfinch
        • Recommended Service Providers
      • Investor KYC / AML Requirements
      • Key Mechanics to Consider
        • Debt Facility Mechanics
        • Transaction Documentation
      • Borrower Senior Pool Participation
      • Backer Transferability
  • Borrower How-To
    • Launching a Borrower Pool on Goldfinch
      • Stage 0: Preliminary Actions and Decisions
      • Stage 1: Deal Structure and Timelines
      • Stage 2: Dataroom Preparation
      • Stage 3: Announcements and Tooling Set Up
      • Stage 4: Borrower Closing
  • General FAQ
  • đź”—Important links
    • Governance Portal
    • Developer Docs
    • Protocol Data Dashboard
    • Borrower Impact Data
    • November 2021 Audit
    • Immunefi Bug Bounty
    • Github
  • đź”—Connect
    • Discord
    • Twitter
    • Medium
    • Weekly Updates
    • Backer Launch Updates
    • Telegram
    • Youtube
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  1. Borrower Mechanics

Raising Capital through Goldfinch

PreviousBorrower MechanicsNextGoldfinch's Capital Providers

Last updated 2 years ago

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Raising capital through the Goldfinch ecosystem can be summarized in four basic steps, which you can learn about in more detail in the of the documentation.

Step 1: A Borrower proposes a to the Goldfinch community, sharing deal terms, structure, and due diligence materials with the . Borrower Pools are specific to individual Borrowers, representing the credit lines from which Borrowers draw capital to funds their real-world lending. Each pool is created by the Borrower encoded with a set of deal terms (including pool size, interest rates, repayment schedule etc.) that match the loan that Borrower Pool represents.

Step 2: The Backers then perform due diligence on the Pool opportunity. This diligence is based on the information shared, directly communicating with the Borrower, and negotiating key terms of the transaction. Backers then supply capital once a transaction agreement has been signed by both the Backers and the Borrower.

Step 3: The automatically allocates its capital to fill deal tickets. Senior Pool capital contribution to the deal based on the , which follows the actions of Backers—to date leverage is set at 3x and in future will be determined automatically by the protocol.

Step 4: The borrower draws the USDC raised from the protocol as a unitranche facility.

These four steps typically take a week to complete.

Protocol Mechanics sections
Borrower Pool
Backers
Senior Pool
Leverage Ratio calculation