Business Model
| Fee Category | Total | Loan Provider | Platform Owners |
|---|---|---|---|
Loan interest | Variable 10-25% prior to relending | 2.00% | |
Loan initiation fee | 0.50% | 0.25% | |
Liquidation penalty | 3.0% | 1.00% | |
(Optional) Trading fee |
Split between Loan Provider and Platform Owners TBD
Phase 1 Target Metrics
Trading volume - $50M per day
Loan initiations - $50M per day
Loans - $500M x Y relending (average 12%)
Trading Fee
Fees available to platform owners (monthly)
Loan initiations = $50M *0.25% *30 days= $3.75M
Loans = $500M * 1.5% / 12 = $0.83M
Liquidations (10% of positions) = $50M * 10% * 1% = $1.50M
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