Repayment

Repayment Schedule

In contrast to many lending protocols, all drawdowns are amortised over a transparent and pre-determined schedule according to protocol parameters set by governance. At present, this is set at three instalments over a 28 days period (including the first instalment which is paid down during the NFT purchase).

Interest

Borrowers are charged simple interest (as opposed to compound), as a means of simplifying the repayment mechanism and promoting better cashflow predictability for both lenders and borrowers.

Given the following parameters:

$P = 10$​

$Rate=0.5214$

$Fees=0.1$

​$Term_\alpha=28\ days$​

$Epoch=14\ days$

$NPer=28/14=2$

$EPY=365/14=26.0\bar7$

Assuming the first instalment is paid down during purchase, we arrive at the following instalment amount that the borrower has to pay at the next epoch:

$Pmt=10*(1+0.1+0.5214/26.0\bar7*2)/3=3.5$

All key terms of the loan are known beforehand using simple arithmetic calculations and stored on-chain, allowing borrowers to easily make business and financial plans when borrowing with Voyage.