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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
  • 🔗Important links
    • Governance Portal
    • Developer Docs
    • Protocol Data Dashboard
    • Borrower Impact Data
    • November 2021 Audit
    • Immunefi Bug Bounty
    • Github
  • 🔗Connect
    • Discord
    • Twitter
    • Medium
    • Weekly Updates
    • Backer Launch Updates
    • Telegram
    • Youtube
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  • Revolving Credit Facility
  • Facility Tranches
  • Interest Payments
  • Facility and Security Agents

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  1. Borrower Mechanics
  2. Structure and Legal Considerations
  3. Key Mechanics to Consider

Debt Facility Mechanics

Below are some key mechanics of a debt facility on the Goldfinch Protocol

Revolving Credit Facility

Borrower Pools on the Goldfinch protocol work like a revolving credit facility. Borrowers have the ability to withdraw and repay (as many times as they like) any amount provided the total outstanding amount at any time is less than the Borrower Pool's credit limit. There are no prepayment penalties. However, it is worth noting that any amount of capital left unutilized in a Borrower Pool can be withdrawn by Backers at any time. This means that although the protocol offers a revolving credit facility, it is not a committed facility. It is designed this way to give Backers liquidity, and to ensure that borrowers do not pay fees on unused capital)

Facility Tranches

Each borrower pool has the ability to accommodate multiple tranches of the same facility. This allows borrowers to grow the size of capital they draw from the protocol without having to launch new Borrower pools.

Interest Payments

The Goldfinch protocol is built to expect interest payments to be made every thirty days, starting from the day a Borrower draws down funds into their wallet. Interest is calculated on an Actual / 365 basis

Facility and Security Agents

As no centralized party provides any administrative roles for transactions on the Goldfinch protocol, Borrowers need to externally source and bear the cost of any facility/admin/security agents required in agreements.

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Last updated 2 years ago

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