What happens if a loan is not repaid on time?

With respect to borrowing and lending peer-to-peer, if a loan has not been repaid, the lender has the ability to seize the collateral that the borrower used to secure the loan.

With respect to borrowing and lending to a liquidity pool, there is no end to the loan and they can be paid back at any time. Lenders will continue to earn the market determined interest rate until the loan is paid back. However, borrowers must ensure that the collateral to principal ratio is always at or above 150%.


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