Q: How does RociFi work? A: On RociFi borrowers can take USDC & USDT loans. Before taking loans, borrowers must ‘score’ their connected addresses, i.e. mint non-transferrable NFCS (Non-fungible Credit Score) for which a Credit Score will be calculated based on the transactional history of the addresses accounted with connected wallet. Borrowers with good scores can get access to loans with lower collateral requirements.
**Q: What kind of tokens can be borrowed on RociFi and what tokens can be used as collateral?**
A: Currently, users are only able to borrow USDC, USDT and use WETH, MATIC, WBTC, USDT, USDC, DAI as collateral.
Q: What is NFCS?
A: In order to borrow on RociFi, users need to mint an NFCS token (Non-fungible Credit Score). The Non-fungible Credit Score is an identity token unique to one address (i.e. one seed phrase) and is proof of ownership of all the addresses that are connected to one NFCS. Each NFCS has one assigned credit score. The credit score is generated based on the transaction history of all the bundled addresses: the best score is 1, while 10 is the worst. The better the credit score the higher the likelihood of access to under-collateralized loans. For more details about NFCS, see here: https://www.notion.so/The-NFCS-token-695aeed147064bbd9d338ac15458775b
Q. How can I generate an NFCS credit score?
A: Connect your wallet(s) with Metamask or WalletConnect and click on the “Calculate credit score” in the top right corner of the application to follow the process to add to the bundle and minting. See NFCS minting tutorial, read here: https://www.notion.so/Minting-NFCS-flow-bb14e56a4d044e82b6ba54ed97c6945a
Q: What does ‘add addresses to NFCS bundle’ mean?
A: NFCS allows linking more than one address to one credit score. This provides better user experience of accessing RociFi via a single account as well as a chance to improve credit score if a user’s DeFi transactional activity is spread across several accounts. Users can connect up to 32 addresses in one bundle. In order to connect several addresses to the NFCS bundle, follow this guide: https://blog.roci.fi/nfcs-bundling-tutorial-48363e34baca
Q: Can I add more addresses to the bundle after NFCS has been minted?
A: Yes. See how to do this in this guide: https://blog.roci.fi/rocifi-releases-v1-10-september-week38-update-b57f07ba233b (p.2)
Q. Can a bad credit score be fixed by creating a new wallet?
A: No, so the score depends on various factors such as interaction with various DeFi protocols, DAO participation, as well as the wallet’s age. New wallets are most likely to have a bad credit score (i.e. 10 ) which will improve as the interactions grow.
Q: Can I re-mint existing NFCS?
A: No, it’s not possible to re-mint your NFCS. NFCS is immutable.
Q: Can I delete/burn existing NFCS?
A: No, it’s not possible to delete or burn your NFCS.
Q: Can I transfer NFCS between wallets?
A: No, NFCS is non-transferable.
Q: What is the primary address in the NFCS context?
A: Primary address is the one that has been used to sign NFCS addresses bundle. Users will be able to borrow only after connecting Metamask with the primary address.
Q: Can bundled addresses be seen on-chain?
A: Yes, at the moment it is possible to analyse which addresses have been added to NFCS. We care about privacy of our users and therefore will be working on making this information hidden in the future iterations of the product.
Q: Can I connect addresses having different seeds to one bundle?
A: At the moment it is only possible to bundle different seed phrase addresses from Ledger and Metamask; the other use cases in the nearest future this won’t be possible.
Q: I use Metamask to connect my wallet. How to switch to Polygon?
A: Follow these instructions: https://academy.binance.com/en/articles/how-to-add-polygon-to-metamask
Q: How do scores from 1 to 9 differ? A: For the review of the credit scoring terminology, check this article:
https://blog.roci.fi/rocifis-defi-credit-scoring-terminology-67109d2114ab
Q: What data is used for scoring? A: The RociFi credit scoring algorithm takes into account dozens of data points across several EVM-compatible chains (borrowing and repayment behavior on DeFi lending protocols, DAO contributions, liquidity provision and trading activities, balance changes over time etc) in order build up unique Defi credit model that would be able to predict user’s creditworthiness
Q: I’ve got a credit score of 6. Is it good or bad? A: This is good. Only 3% of scores get ‘6’ and only 18% of scores get ‘1 to 9’.
Q: How do I improve my credit score? A: For obvious reasons we can’t disclose full details on how credit scoring works. However, here are a few recommendations:
Q: Which chains does RociFi analyze for transactional data? A: RociFi analyses transactional data from Ethereum mainnet, Polygon, BSC, Avalanche and Optimism. We are extending the coverage to support more EVM-compatible chains.
Q: What kind of loans is possible to take at RociFi? A: RociFi serves users who need fixed-rate fixed-duration loans. At the moment, RociFi offers only 30-days loans. The rates of loans are fixed and vary per pool. At the moment, the collateral is set as 84% for the under-collateralized pseudo-anonymous pools and 120% for the over-collateralized pools.
Q: When users must repay their loans? A: Users must repay their loans at the end of the 30-days duration term plus 5 days grace period. I.e. if the loan is not repaid on the 36th day, the loan’s collateral gets liquidated.
Q: What scores do get access to the under-collateralized lending? A: At the moment, retail pseudo-anonymous users with scores 1 to 6 can get access to the under-collateralised lending in Pool2.
Q: RociFi is the protocol for the under-collateralized lending. Why are there also over-collateralized pools? A: Over-collateralized pool serves users with the score 10. Over-collateralized loans also have a 30 days duration. By repaying their loan, users with scores 10 can improve their score and get access to the under-collateralized pool.
Q: Are there limits? A: At the moment, the max borrow amount for the under-collateralized loan is 500 USDC. For the over-collateralized loan it is 10000 USDC.
Q: Is there any way to get a 60 days loan maturity period? A: In V2 all loans are 7- and 30-days long, but in the future versions we will aim to provide also 14- and 60-days long loans. Let us know in the Discord why you need 60-day long loans and longer.
**Q: When is collateral liquidated?**
A: If loan’s maturity and grace periods have passed, loan’s underlying collateral is liquidated, exchanged to the loan asset and deposited back to the pool. This means, for 30-days loans, collateral of the non-repaid under-collateralised loans is liquidated on the 36th day of the loan issuing (maturity + grace period). If at the time of the liquidation-by-maturity, collateral value in USDC exceeds principal amount, then the excessive collateral will be available for withdrawal.
Q: Is there a liquidation fee paid to liquidators?
A: RociFi currently performs all liquidations on the protocol thus there is no liquidation fee applied.
Q: Can I borrow against my deposit at RociFi? A: No, you can’t borrow against your deposit at RociFi.
Q: Will the protocol offer loans in non-stable token types such as ETH or MATIC?
A: For the time being the V2 protocol will only provide stablecoin assets for borrowing.
Q: Why do I get an error message “Please specify amount greater or equal to 1.0”
A: The minimum loan size is $1. Please request a loan equal to or above this amount.
Q: What if I don’t pay back money? A: In case of missing maturity date:
Q: When a user forgets to repay the loan and after the grace period has passed he tries to repay the loan, at that time his wallet has been marked as a defaulter. His collateral has been liquidated, Will his credit score be restored if he can pay back the loan difference and interest? A: Yes. If user pays back the debt, credit score will be restored but will be worse than if the user would have paid the loan in time. Also, interest is being accrued every day until the user pays back. So, it is economically more viable to pay back in time rather than repay late.
Q. How is the APY for lenders calculated? A: The interest that lenders earn on RociFi depends on various factors:
Q. What is the maximum APY that lenders can earn? A: When there are no discount rates, APRs for the under-collateralized pseudo-anonymous borrowers is north of 20%. If all borrowers repay, and utilization of the pool is 90%, then lenders can get 200.90.9 = 16.2% (10% of fees is earned by RociFi)
Q. Can lenders lose part of their deposit in case of non-repayment? A: Theoretically, depositors can lose money if the repayments are low. However, the maximum loss that lenders can get is -16% during the time of the 30-days deposit if 0 borrowers repay (absolutely unlikely) while utilization of the pool is 100% (also, absolutely unlikely). For more details on various return simulations, please refer to https://blog.roci.fi/how-lenders-can-earn-with-rocifi-4593611de16b.
Q. Why haven’t my deposits accrued interest yet? A: Our lending pool’s debt token price increases only when loans are repaid, thus accrued interest won’t update continuously. This more accurately reflects the underlying health of our pools, especially under-collateralized. As borrowers repay, you’ll see your accrued interest grow.
Q: Can I borrow against my deposit at RociFi? A: No, you can’t borrow against your deposit at RociFi. Additional resources:
https://blog.roci.fi/how-lenders-can-earn-with-rocifi-4593611de16b
Q: Why can’t I withdraw a precise stablecoin amount? A: It is not possible to withdraw a precise amount because RociFi’s deposits are enumerated in the debt token, whose price continuously fluctuates. Therefore, users can specify what % of the debt token they want to withdraw, which is converted into the stablecoin amount at the point of withdrawal.
Q: Can I sell my debt token on the open market? A: Theoretically, RociFi debt tokens can be exchanged on external AMMs. However, at the moment there are no liquidity pairs / pools set up for the debt token on external AMMs.
Q. How does RociFi ensure the safety of funds in the protocol? A: RociFi code has been audited by Certik, Chainsulting and Hexens. Also, RociFi runs bug bounties at https://immunefi.com/.
Q: Who is on the RociFi leadership team? A: RociFi is a multinational team of remotely-working individuals. RociFi’s founders come from diverse backgrounds: credit analysis, crypto hedge fund management, leadership at European Fintech and trading apps. RociFi’s leadership team have worked at US banks, European unicorns as DeliveryHero and Auto1, and Fintech companies such as Kreditech, Bitwala and Y-Combinator-backed startups.
Q: Is RociFi going to be DAO? A: RociFi follows the path of ‘progressive decentralization’. After we launch the product on mainnet we will gradually decentralize decision making and governance of critical ecosystem components.
Q: How much has RociFi raised to date? A: RociFi has raised $2.7M USD. For more details about RociFi’s funding round, read here: https://www.coindesk.com/business/2022/04/12/rocifi-labs-raises-27m-to-enable-on-chain-credit-scoring-for-defi/
Q: Who are the current backers of RociFi? A: The following investors have backed RociFi in its seed funding round: ArringtonXRP Capital, a crypto hedge fund; Signum Capital, a crypto venture fund; Nexo, a leader in CeFi lending; GoldenTree, an asset management company with nearly 50 billion in assets; LDCapital, a blockchain venture firm from China; and Skynet Trading, a crypto marketmaker from the Netherlands.
Q: Who is the best contact person to discuss partnerships and other business proposals? A: Please contact us on Discord or Telegram
Q: When is the token launch going to happen? A: Utility and token launch time is TBD. Stay tuned for updates.
Q: Will there be an Airdrop? A: There is no plan for an airdrop at the moment.
Q: What roles can I get in the community? A: “NFCS Holder”: Just mint NFCS and register in the Discord channel “nfcs-holder-verify” “RociFighter”: Continuously do various sharing tasks and register yourself in the “rocifi-club” Discord channel “Feedback champ”: This role is given to people who provide valuable product feedback
**Q: How do I get involved in the RociFi community?**
A: You can currently participate in the community quest program by completing tasks on [<https://rocifi.crew3.xyz/>](<https://rocifi.crew3.xyz/>), earn points and places in the leaderboard [<https://rocifi.crew3.xyz/leaderboard>](<https://rocifi.crew3.xyz/leaderboard>). For more details, check Discord channel ‘rocifi-quests’.
**Q: What kind of credentials & badges can I earn with RociFi?**
A: We will continously release new badges on Galaxy.eco, Pyme, Quest3. All RociFi campaigns are connected to ‘Missions’. Mission is some period of time (approx 2–3 months long), during which certain strategic goals are set. Each Mission will consist of a few campaigns. This means that within each Mission there will be ‘Super-Early Contributor’, ‘Early Contributor’, ‘Contributor’ and VIP.
**Q: How can I join the RociFi ambassador program?**
A: Currently ambassador onboarding temporarily closed. Stay tuned, it will be available again in the future.
**Q: Can I become community manager or moderator?**
A: At the moment we are not looking for moderators. However, you can be noticed if you become active in our community, especially if you can grow such regions as LatAm, Turkey, India
**Q: How can I get a job in RociFi?**
A: All open vacancies available here: [<https://join.com/companies/rocifi>](<https://join.com/companies/rocifi>). If you didn’t find a vacancy that interests you, fill in your application here: [<https://forms.gle/grSbq8Jp9maRdjvE9>](<https://forms.gle/grSbq8Jp9maRdjvE9>)