Users must repay loan within loan maturity term + grace period. Grace period is set for 5 days across all loan durations in the platform.

• For loans with 30 days of maturity, this means that loan must be repaid within 35 days.
• For loans with 7 days of maturity, this means that loan must be repaid within 12 days.

Liquidations on maturity

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 and any accrued interest, then the excessive collateral will be available for withdrawal. All liquidations performed by RociFi admin and there is a liquidation fee of 5% applied. Note this liquidation fee is only applied once the loan’s principal and accrued interest have been fully repaid.

Price-based liquidations (only in occasional cases)

By default, loans on RociFi are not liquidated based on price. Price-based liquidations can be enacted only in occasional cases on collateralised loans (where LTV < 100%) of large sizes.

All price based liquidations are performed by RociFi admin. A liquidation threshold of 5% is applied and there is a liquidation fee of 5%. The liquidation fee is only applied if the interest and principal have been fully paid. Any remaining amount is then returned to the user. For example a loan with an initial LTV of 80% + 5% liquidity threshold would be liquidated if the loan went above 85% LTV. Note that under collateralised loans are never liquidated on price.

Punishment for non-repayment

To sum up, in case of missing maturity date:

• Your collateral will be liquidated at the date of maturity + grace period, sold for USDC and be returned to the pool
• From the point when your loan is mature (end of loan duration), the interest is 2x more than the standard one. The later you decide to repay, the more interest you are going to pay
• In case during the liquidations, collateral value of your loan was smaller than the principal, and you still owe amount to RociFi, then:
  • Your score will be downgraded to ‘101’ (Defaulter). This will be visible to all partners that use RociFi score to vet their users: Cyberconnect, RelationLabs, projects that select users for airdrops, launchpads, other Lending platforms, Etherscan, Polygonscan, Social graphs, DAO Management etc.
  • As a punitive measure for the non-repayment, your address(es) will be ‘doxxed’ on Twitter
  • Most importantly, by defaulting (1), you force the community, i.e. depositors, to lose money
• If there is still debt after the liquidation, you will be able to repay and 'fix' your score