LendCollateralLoansOffers
BorrowAssetsLoansOffers
AboutHow it worksFAQNFTfi statisticsAmbassadors

Frequently asked questions

example

Getting Started

Borrowing

Lending

Listing new NFT collections & projects

What is the meaning of life?

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse varius enim in eros elementum tristique. Duis cursus, mi quis viverra ornare, eros dolor interdum nulla, ut commodo diam libero vitae erat. Aenean faucibus nibh et justo cursus id rutrum lorem imperdiet. Nunc ut sem vitae risus tristique posuere.

Heading

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

Getting Started

what-is-nftfi

What is NFTfi?

NFTfi is the leading liquidity protocol for NFTs. 

We allow NFT owners to use the assets (NFTs)they own to access the liquidity they need by receiving secured wETH and DAI loans from liquidity providers, peer-to-peer, in a completely trustless manner. 

NFT liquidity providers use NFTfi to earn attractive yields or — in the case of loan defaults — to have a chance at obtaining NFTs at a steep discount to their market value. 


what-is-nftfis-vision

What is NFTfi's vision?

NFTfi's vision is to build a fully decentralized, permissionless, user-owner public utility, supporting the seamless financialization of NFT based economies through innovative mechanisms and highly user-friendly applications.

how-do-i-create-a-nftfi-account

How do I create a NFTfi account?

NFTfi currently requires the MetaMask digital wallet to connect. You can find and install it here. Then, navigate to nftfi.com and click on any tab and you will be prompted to connect your wallet. You can then navigate to the ‘Account’ tab on the top right where you can edit your account information. If you add an email address to your account, you will be able to receive email notifications.

Your NFTfi account corresponds to the connected MetaMask wallet Ethereum account. To switch, simply switch accounts in Metamask and refresh the page.

We encourage all users to list their Discord ID in their Account profile. We have a bustling community on our Discord server and that is usually where Borrowers and Lenders can find each other, discuss terms, ask further questions, get tips, ask for help in valuations or take part in NFT project/collateral discussions. 


why-do-collectors-and-artists-love-nftfi

Why do collectors and artists love NFTfi?

The ability to access liquidity against their NFTs without selling the asset gives unprecedented financial flexibility to NFT holders, especially if they have a large percentage of their portfolio locked up in these illiquid assets. 

A few examples of what the liquidity obtained via NFTfi can be used for include: 

  • Serving immediate liquidity needs (e.g. covering margin positions)
  • Taking advantage of short-term investment opportunities (e.g. high-yield liquidity mining or NFT flips)
  • Taking advantage of long-term investment opportunities (e.g. buying real estate; long-term loans is now supported in NFTfi V2)
  • Delaying a planned sale of an NFT for more opportune market conditions
  • Delaying a planned sale of an NFT to defer potential capital gains tax
  • Financing ‘real life’ needs without having to sell valuable assets

what-are-the-main-nftfi-lender-benefits

What are the main NFTfi lender benefits?

Liquidity providers use their idle capital to earn attractive yield and, in case of Borrower defaults, they have a chance at obtaining NFTs at a steep discount compared to market prices. Strategies vary among liquidity providers.

NFTfi liquidity providers are typically collectors themselves and possess a deep understanding and appreciation of the NFT markets, or a specialized niche within them. Recently, more professionally operating and highly analytical individual and organizational liquidity providers (e.g. lending DAOs) have emerged.

is-nftfi-safe-to-use

Is NFTfi safe to use?

NFTfi is a peer-to-peer platform connecting NFT holders and liquidity providers directly via permissionless smart contract infrastructure. The NFTfi team at no point has access to any asset or is involved in any way in the negotiation of terms between Lenders and Borrowers.

The NFTfi V1 smart contracts are longer in use, and NFTfi V2 was launched at 11:15 AM SAST on 4th April 2022. Any active loans initiated on NFTfi V1 will still complete on NFTfi V1.

The modular NFTfi V2 smart contract system has been double-audited by two industry-leading firms (Chainsecurity, Halborn). You can see loan stats in the NFTfi Dune dashboard.

The NFTfi V2 smart contract addresses are:

  • 0x8252Df1d8b29057d1Afe3062bf5a64D503152BC8
  • 0xaDDE73498902F61BfCB702e94C31c13C534879AC
  • 0x5A42d72372858E10Edc03B26bF449F78fF3c0e6F
  • 0x0C90C8B4aa8549656851964d5fB787F0e4F54082
  • 0x5660E206496808F7b5cDB8C56A696a96AE5E9b23
  • 0xe73ECe5988FfF33a012CEA8BB6Fd5B27679fC481
  • 0xE52Cec0E90115AbeB3304BaA36bc2655731f7934

The NFTfi V1 (now deprecated) smart contract address is: 

  • 0x88341d1a8F672D2780C8dC725902AAe72F143B0c

does-nftfi-charge-a-fee

Does NFTfi charge a fee?

The NFTfi service fee for Lenders is 5% of the interest only earned by Lenders on successful loans. In the case of a loan default, there is no service fee. Also, there is no service fee for Borrowers.

can-i-export-my-loan-data-for-tax-reporting-purposes

Can I export my loan data for tax reporting purposes?

Yes, to simplify your loan analysis or tax reporting, you can download loan data in a CSV file: Navigate to your Account and click the Loans tab. Click the “Export in CSV” button, and you will retrieve your loan data.

which-cryptocurrencies-does-nftfi-support-huh

Which cryptocurrencies does NFTfi support?

NFTfi presently supports Wrapped Ethereum (wETH) and Dai (DAI). You can wrap regular ETH into wETH on Uniswap or many other venues.


which-blockchains-does-nftfi-support-blockchains-does-nftfi-support

Which blockchains does NFTfi support?

NFTfi currently only supports the Ethereum blockchain. That being said, we have an ambitious multi-chain strategy. We will soon launch on Flow blockchain, the first step in that direction.

which-browsers-and-devices-are-supported

Which browsers and devices are supported?

We recommend you use desktop devices and Google Chrome browser for the best experience.

can-i-borrow-lend-directly-from-my-gnosis-safe-and-other-smart-contract-wallets

Can I borrow/lend directly from my Gnosis Safe and other smart contract wallets?

Yes, V2 of the NFTfi protocol supports EIP-1271, a standard way for contracts to verify if a provided signature is valid when an account is a smart contract. Our smart contracts and SDK support Gnosis Safe multi-sig, but the dApp is not yet supported.

where-can-i-find-more-information-about-nftfi

Where can I find more information about NFTfi?

what-does-peer-2-peer-p2p-stand-for-and-how-is-it-different-from-peer-2-pool-lending

What does Peer-2-Peer (P2P) stand for and how is it different from Peer-2-Pool lending?

P2P and P2Pool are fundamentally different approaches to enabling NFT credit markets. The advantages of NFTfi are: 1) borrowers get higher LTVs on average (driven mainly by lender competition and diversity; there are many lenders who are offering very high LTVs / taking very high risk since they are long the collateral and don't mind defaults); 2) no auto-liquidations hence borrowers always have the option of paying back their loans until loan maturity; they can't be liquidated half-way through as it can happen on a P2Pool protocol (a P2P protocol such as NFTfi does not take any protocol risk and does not need to manage liquidity, hence does not need a liquidation mechanism).

Borrowing

how-can-i-get-a-loan-against-my-nft

How can I get a loan against my NFT?

If you own an NFT from a listed collection, you can now list it as collateral on NFTfi.com. Click the ‘Borrow’ tab and find the asset you would like to list as collateral. If you have a specific loan amount, duration, and interest rate in mind that you’re looking for, you can specify those desired terms to guide potential Lenders on their offers.

Once listed, your asset will appear in the collateral section (Lend/Collateral), and Lenders can make offers against it. If you did choose to specify loan terms, a loan gets automatically executed once a Lender accepts these terms. If you listed the asset without specifying preferred terms, a loan would only get executed when you choose to accept a certain Lender’s offer. Loan offers automatically expire after 7 days if not accepted and only remain valid as long as the Lender’s wallet is sufficiently funded.

Once you accept a loan, your NFT is transferred to the NFTfi escrow smart contract (V2 contract address: 0x8252Df1d8b29057d1Afe3062bf5a64D503152BC8). The smart contract securely holds the NFT until it’s reclaimed by you upon repaying the loan or claimed by the Lender in case of failure to repay in time (loan default). Until such time, the technical owner of the NFT is the escrow smart contract, and you will not be able to use the NFT in any way while it is in escrow. We are working on implementing a rights management system that will allow you to use your NFT for specific cases while in escrow!

You can view your current loans under ‘Borrow/Loans’ and your past loans under ‘Lend/Loans’.

We highly recommend you read our borrowing guide before taking out your first loan.

when-i-give-nftfi-access-to-manage-an-asset-in-my-wallet-will-this-apply-to-all-my-assets

When I give NFTfi access to manage an asset in my wallet, will this apply to all my assets?

Approvals happen at the NFT contract level. This means that once you have approved or granted NFTfi access to manage an asset, the NFTfi smart contract will have access to all of your assets minted on that contract. The NFTfi smart contract will not have access to manage NFTs minted on other contracts though. For example, if you approve a BAYC and you have multiple apes and also a CryptoPunk, our smart contract will have the ability to manage all of your apes but not your CryptoPunk. Remember - the only way for the contract to move the asset is for you to start a loan on the asset, so this can not happen automatically. 

how-do-i-repay-a-loan-and-get-my-nft-back

How do I repay a loan and get my NFT back?

Here are a few important pointers regarding repayments:

  • You can repay the loan at any time before it is due, but you still pay the full interest amount
  • You can only repay the loan from the wallet you started the loan with 
  • You can only repay the loan in one single repayment, i.e. not partially
  • You can request loan renegotiation at any time before the loan is foreclosed by the lender. Read more here.
  • Once you default on a loan, it cannot be repaid any longer, even if the Lender has not foreclosed yet.
  • Once a Lender has foreclosed the NFT of a defaulted loan, they become the sole owner and the loan can no longer be repaid through the NFTfi platform
  • Make sure you have both ETH and wETH in your wallet! You’ll use wETH to repay the loan, but you still want enough ETH to be able to pay for gas. 

Once you have repaid the loan in full, including interest, the NFT will be released from the smart contract (escrow) and returned directly to your wallet. However, if you fail to make payment in full before the due date, the Lender will be able to click the ‘foreclose’ button and the NFT will be moved from escrow to their wallet.

how-can-i-repay-the-loan-if-the-website-is-down-or-not-accessible

How can I repay the loan if the website is down or not accessible?

In the very unlikely event that the website is down, you can repay your loan via Etherscan. 

is-it-possible-to-renegotiate-a-loan

Is it possible to renegotiate a loan?

Yes, loan renegotiation can be initiated both by the borrower and lender on any active loan that is not yet foreclosed by the lender. To read more about loan renegotiations and how they work, please read this blog post. Due to a contract redeployment, loans started before October 21st 2022 cannot be renegotiated any longer.

how-should-i-think-about-sensible-loan-terms-for-my-nft

How should I think about sensible loan terms for my NFT?

NFTfi is a peer-to-peer platform and the liquidity terms are agreed upon exclusively and directly between lenders and borrowers. Several factors (as perceived by the two counterparties) typically affect loan terms, including but not limited to:

  • Current market conditions
  • Quality and longevity of the respective collection
  • Rarity of the specific NFT

Here are a few resources that might help you estimate the value of your NFT, and infer sensible loan term ranges:

  • Marketplaces such as OpenSea, and websites like Rarity Tools
  • Browsing past loans given against similar assets on NFTfi
  • #valuation-and-appraisals NFTfi Discord channel
  • The #rockefeller Discord channel (accessible for active Lenders only)

do-borrowers-pay-gas-fees

Do Borrowers pay gas fees?

Borrowers will pay gas fees for the operations listed below:

  • Approving NFTfi to interact with your NFT (once per NFT collection, except for CryptoKitties, where it must be done for each individual cat as CK isn’t fully ERC-721 compliant).
  • Approving the NFTfi smart contract to spend (repay) wETH or DAI for the first time (this is a one-time transaction)
  • Canceling an offer on-chain (due to security reasons)
  • Starting a loan
  • Repaying a loan

can-my-nft-receive-airdrops-during-the-loan-duration

Can my NFT receive airdrops during the loan duration?

Remember that when you begin a loan, your NFT is moved into the NFTfi escrow smart contract. Therefore the de facto owner of the NFT during the duration of the loan is the smart contract. No one (also not the NFTfi team) can access the NFT during that time.

Whether you are able to receive an airdrop during an active loan depends on the airdrop/claim mechanism. In some scenarios - the answer is no. Here are a few scenarios for your reference (please note, this list is not exhaustive):

  • If the airdrop is distributed based on a snapshot that was taken before your loan began, at a time when the NFT was still in your wallet, then your wallet will still receive it.
  • If the airdrop occurs in real-time or based on a snapshot that was taken after the loan began, then the smart contract will likely receive the airdrop, in which case it cannot be retrieved later.
  • In yield-bearing NFTs, where the claim/value is accrued "in" the NFT or "connected" to the NFT, the claim will be waiting for you once you have possession of the NFT again.

In yield-bearing NFTs, where the claim/value is accrued "in" the NFT or "connected" to the NFT, the claim will be waiting for you once you have possession of the NFT again.

Lending

how-do-i-make-a-loan-against-an-nft

How do I make a loan against an NFT?

Proceed to the ‘Lend’ tab. As a Lender, you can browse all available NFT collateral and make (gas-free) loan offers by proposing a loan amount, duration and interest rate. Once you submit an offer, it will show on the asset's listing page. You can modify or cancel an offer any time before it is accepted. If your loan offer is not accepted it will expire automatically after 7 days. You can currently only make 1 offer on any given NFT at a time.

Once a Borrower accepts your loan offer, the corresponding funds will be automatically deducted from your account. From hereon, as a Lender, you cannot cancel the loan before it expires, it could be repaid early by the Borrower, however. 

If a loan is not paid back by the Borrower in time, the asset becomes available for foreclosure by the Lender. If you click on ‘Foreclose’ the NFT will be transferred to your wallet.

Before getting started, we highly recommend you read our lending guide.

how-should-i-think-about-sensible-lending-strategies-on-nftfi

How should I think about sensible lending strategies on NFTfi?

You might find this Medium article helpful in formulating your personal NFTfi lending strategy: https://nftfi.medium.com/3-lending-strategies-on-nftfi-com-dad12c757c5d

do-lenders-pay-gas-fees

Do lenders pay gas fees?

Lenders pay gas fees for the operations listed below:

  • Approving the NFTfi smart contract to spend wETH or DAI for the first time (this is a one-time transaction)
  • Foreclose an NFT in case of a Borrower default.

what-are-private-offers

What are private offers?

Lenders can use private offers to make a loan offer to potential borrowers for assets that are not publicly listed. Private offers can also be used by friends or parties who know each other but would like to facilitate a loan without listing an asset on NFTfi. To learn more about private offers, please read this blog post.

what-are-standing-collection-offers-scos

What are Standing Collection Offers (SCOs)?

Standing Collection Offers or SCOs are a loan offer type, allowing lenders to submit loan offers that are valid for any currently listed NFT (or that may be listed in the future) from a particular NFT collection. Before, lenders had to place individual loan offers for each individual NFT asset in a collection - now they can target entire collections (any asset within the collection) with just one offer! There are several risks associated with SCOs and we advise you carefully read this blog post before placing any Standing Collection Offers!

what-is-the-rockefeller-role-in-discord

What is the Rockefeller role in Discord?

The Rockefeller role (red-labeled names) is a special designation claimable by anyone who is currently lending on NFTfi and has an active loan (i.e. holds a Promissory Note). Rockefellers receive special privileges in recognition for promoting liquidity on NFTfi, including access to a lenders-only channel called “🎩-rockefellers” (link)

If you have an active loan — please head over to our dedicate channel #collabland-join (link) and follow the instructions there: you’ll be prompted to connect your wallet. If the system indeed detects an NFTfi Promissory Note (indicating an active loan) it will grant you the Rockefeller role. Only active lenders can claim the role. If you lost the role due to not having any active loans, you can later reclaim it when you do, by repeating the process explained above.

Listing new NFT collections & projects

how-does-nftfi-list-new-nft-projects-and-collections

How does NFTfi list new NFT projects & collections?

Listing is the process of approving specific NFT collections for use as collateral on the NFTfi platform. Users can only list and borrow against collections that have been explicitly approved by the NFTfi team.

The NFTfi team aims to approve new collections based on a few quantitative (e.g. floor price and liquidity) and qualitative (e.g. community dynamics) criteria. We plan to hand over listing decision-making to the NFTfi community sometime during 2023. For now, users can suggest new NFT collections for approval using this listing form.

The current criteria include: 

  • Floor price greater than 1 ETH  (some flexibility if there is clearly large borrower demand and community support)
  • Trading volume greater than 500 ETH 
  • Implemented ERC-721 standard (ERC-1155 soonTM)


how-do-i-request-a-project-or-collection-to-be-listed

How do I request a project or collection to be listed?

These are the steps that will need to be followed in order to request projects be listed:

  1. You need to fill in the listing form. This will automatically add your suggestion to the list that the NFTfi team checks on a weekly basis. If you want to speed up the process, convince a  large group of other users  requesting the respective listing via the listing form as well :).
  2. All projects will be added to our watch list, where we track projects to see when they achieve the necessary criteria.