Repay
1. What assets do I need to repay?
You can repay your loan in the asset you borrowed or in DFY. For example, if you borrow 1,000 USDT, you will have to repay 1,000 USDT (the principle debt) plus accrual interest (in USDT or DFY depending on Lender's policy)
2. Can I repay my loan ahead of schedule?
Yes. You can definitely repay the full loan ahead of schedule. Firstly, you have to complete all the unpaid penalty and interest amount. Interest is calculated until the month/week you decide to repay (based on the duration you selected as Months or Weeks)
3. How is the interest calculated?
Parameters
Description
In
The interest of current period
Interest rate per period
The interest you see is X% / year. If the interest rate =10%, it means:
• When the duration is week, interest/week = Loan * (10/100) * (7/365)
• When the duration is month, interest /month = Loan * (10/100) * (30/365)
Loan
Unpaid principal debt till current period
n
Current period
The interest is calculated every week/month. Starting from the contract start date with the duration/period definitions: 1 week = 7 days, 1 month = 30 days, and 1 year = 365 days.
4. When do I have to pay the interest?
• To the loan duration = week, you have 2 first days of every week to pay
• To the loan duration = month, you have 7 first days of every month to pay
If you don't pay enough the interest amount on time, the system will report as +1 late payment and requires you to pay extra penalty for the unpaid interest amount (A new period is created automatically for this penalty repayment)
5. How is the penalty calculated?
If you don't pay enough the interest amount on time, the system will report as +1 late payment and requires you to pay extra penalty for the unpaid interest amount applied the following formula (A new period is created automatically for this penalty repayment)
Parameters
Description
Parameters
Description
n
Current period
n-1
Previous period
Pn
Penalty of current period
Pn-1
Penalty of previous period
Interest rate per period
• When the duration is week, interest/week = Loan * (10/100) * (7/365)
• When the duration is month, interest /month = Loan * (10/100) * (30/365)
Ln-1
Unpaid interest of previous period
Penalty rate
150%
6. When do I have to pay the penalty?
• To the loan duration = week, you have 2 first days of every week to pay the interest, this means you can pay for the penalty from the 3rd day till 7th day of the week period based on the contract start date.
• To the loan duration = month, you have 7 first days of every month to pay the interest, this means you can pay for the penalty from the 8th day till 30th day of the month period based on the contract start date.
If you don't pay enough the interest amount on time, the system will report as +1 late payment and requires you to pay extra penalty for the unpaid interest amount.
7. How is the penalty and interest having same period calculated?
If you don't pay enough the interest amount on time, the system will report as +1 late payment and requires you to pay extra penalty for the unpaid interest amount.
Applied the formula in question 3,
Penalty = Pn-1 + Pn-1 * (Interest rate per period) + Ln-1 * (Penalty rate)
• If penalty is a separated period which has been created: Pn-1 and Ln-1 is as normal.
• If penalty is at the same period as interest's: Pn-1 is as normal, Ln-1 = 0
E.g. Interest = 10%, Duration = 3 weeks. Unpaid Interest period 1 = 0.15342DFY
• Penalty period 2 (newly created) = 0 + 0 * (10/100) * (7/365) + 0.15342 * (150/100) =2.23013DFY
• Penalty period 3 (same period as interest's) = 2.23013 + 2.23013 * (10/100) * (7/365) + 0 * (150/100) = 0.23057DFY
8. Can you provide me with a specific example please?
Period
Unpaid Penalty
Total unpaid penalty (Amount might vary due to exchange rate)
Unpaid interest
Total unpaid interest (Amount might vary due to exchange rate)
1
0
0
0
= Loan * (Interest rate per period)
= Loan * (100/100) * (7/365) = 1.53425 DFY
2
(Added this period due to unpaid interest)
0
= Pn-1 + Pn-1 * (Interest rate per period) + Ln-1 * (Penalty)
= 0 + 0 * (100/100) * (7/365) + 1.53425 * (150/100)
= 2.30138
0
0
3
0
= Pn-1 + Pn-1 * (Interest per period) + Ln-1 * (Penalty)
= 2.30138 + 2.30138 * (100/100) * (7/365) + 0* (150/100)
= 2.34552
0
= Loan * (Interest rate per period)
= Loan * (100/100) * (7/365) = 1.2274 DFY
9. How do I pay for penalty, interest or principle amount?
Step1: Connect wallet and click on [My Account]
Step2: click on [Borrow profile] - [Contract] and select an active contract you desire to pay
In step 2, here you can view the contract details after selecting a contract.
Contract details
Current LTV information. You can also learn more about LTV and LTV liquidation threshold in LTV & LTV liquidation threshold
Repayment information
Step 3: Click on [Repayment]
You can enter a desired number in Amount box or simply select Max to pay total Penalty, Interest, or Loan.
In step 3, after you complete the repayment for Penalty, Interest, or Loan on wallet extension or D-app, the total loan will be updated in Repayment History section.