Borrower Guide
This guide explains how to borrow ETH using your NFTs as collateral while preserving your TDH.
Before You Start
Choose Your Mode
| Safe Guard Mode | Deposit Mode | |
|---|---|---|
| Wallet Type | Safe wallet only | Any wallet (EOA) |
| Setup Required | Install Guard + Module | None |
| Deposit Required | No | Yes (20% of principal) |
| Interest Rates | Lower | Higher |
| Risk Level | Lower (hard lock) | Medium (economic security) |
Recommendation: If you have or can create a Safe wallet, use Safe Guard Mode. You'll get better rates and don't need to put up a deposit.
Check Your NFT Value
The amount you can borrow depends on:
- Your NFT's floor price
- The lender's offered LTV (loan-to-value ratio)
- Your collateral mode (Safe Guard gets better terms)
Typical LTV: 30-50% of floor value
Understand the Terms
- Principal: The ETH amount you borrow
- Interest Rate: Annual percentage rate (APR), shown in basis points (1000 = 10%)
- Duration: How long you have to repay
- Maturity: When the loan ends (start + duration)
- Grace Period: 24 hours after maturity before liquidation
Option A: Accept an Existing Offer
Lenders post offers with their terms. You can browse and accept one that fits your needs.
Step 1: Browse Offers
- Go to the Offers page
- Filter by:
- Amount needed
- Your collateral mode (Safe Guard or Deposit)
- NFT collection requirements
- Interest rate
- Duration
Step 2: Select an Offer
Review the terms carefully:
- Principal amount
- Interest rate (APR)
- Duration
- Any NFT restrictions (collection, token ID range)
Step 3: Accept the Offer
For Safe Guard Mode:
- Ensure your Safe is properly configured
- Select the NFT to use as collateral
- Confirm the transaction from your Safe
- Wait 24 hours for activation
- After activation, principal is sent to your wallet
For Deposit Mode:
- Select the NFT to use as collateral
- Ensure your wallet has approved the lending contract
- Send the transaction with your deposit (20% of principal)
- Principal is immediately sent to your wallet (minus deposit)
Option B: Create a Loan Request
Post your own terms and wait for a lender to fund it.
Step 1: Set Your Terms
- NFT: Select the NFT to use as collateral
- Principal: How much ETH you want to borrow
- Max Interest: Maximum APR you're willing to pay
- Duration: How long you need the loan
- Mode: Safe Guard or Deposit
Step 2: Post the Request
For Safe Guard Mode:
- Ensure your Safe is properly configured
- Submit the request (no deposit needed)
- Your NFT isn't locked yet—it gets locked when funded
For Deposit Mode:
- Submit the request WITH your deposit (20% of principal)
- Your deposit is held in escrow until funded or cancelled
- You can cancel anytime to get your deposit back
Step 3: Wait for Funding
- Lenders browse requests and choose which to fund
- You'll be notified when your request is funded
- Safe Guard loans: 24hr activation delay, then principal sent
- Deposit loans: Principal sent immediately
During Your Loan
Your NFT Stays in Your Wallet
- Safe Guard: NFT is locked (can't transfer) but stays in your Safe
- Deposit: NFT stays in your wallet with an approval to the contract
TDH Continues Accruing
Your wallet still holds the NFT, so TDH accumulates normally.
Monitor Your Loan
- Check remaining time until maturity
- Calculate your repayment amount (principal + accrued interest)
- Set a reminder before maturity!
Add Additional Collateral (Optional)
If you have NFTs from approved collections, you can add them as additional collateral:
- Go to your loan details
- Click "Add Collateral"
- Select NFTs from approved collections
- These NFTs ARE transferred to escrow (they don't have TDH concerns)
- This can help if you need to renegotiate or add security
Repaying Your Loan
Calculate Repayment
Repayment = Principal + Interest
Interest accrues linearly over time:
Interest = Principal × (APR / 10000) × (Time Elapsed / 365 days)Example: 1 ETH at 10% APR for 30 days
Interest = 1 × (1000 / 10000) × (30 / 365) = 0.0082 ETH
Total Repayment = 1.0082 ETHSteps to Repay
- Go to your active loans
- Click "Repay"
- Send the repayment amount (shown in the UI)
- Once confirmed:
- Safe Guard: NFT is unlocked
- Deposit: Your deposit is returned
- Additional collateral: Returned to you
Early Repayment
You can repay at any time before maturity. Interest is calculated based on actual time elapsed, so early repayment saves money.
What Happens If You Don't Repay
Grace Period
After maturity, you have a 24-hour grace period to repay. Interest continues accruing.
Default & Liquidation
After the grace period, anyone can trigger liquidation:
Safe Guard Mode:
- The Liquidation Module transfers your NFT to the lender
- You keep the borrowed ETH but lose the NFT
Deposit Mode:
- Contract transfers your NFT to the lender (using your approval)
- Your deposit is also sent to the lender
- You keep the borrowed ETH but lose NFT + deposit
Avoid Default
- Set calendar reminders
- Repay early if you're unsure about timing
- Monitor ETH prices if you need to sell to repay
Deposit Mode: Don't Cheat
If you're using Deposit Mode, DO NOT:
- Transfer your NFT to another wallet
- Revoke the contract's approval
- Use a different approval to transfer the NFT
If you do any of these:
- Anyone can call
reportCheating - Your deposit is immediately slashed
- The deposit goes to the lender
- You're effectively blacklisted
The deposit exists to make cheating unprofitable. Play fair.
Cancelling a Request
If your loan request hasn't been funded yet:
- Go to your pending requests
- Click "Cancel"
- Confirm the transaction
- Deposit Mode: Your deposit is returned
You cannot cancel after funding.
Fees
- Platform Fee: 2.5% of interest paid (not principal)
- Gas Fees: Standard Ethereum gas for transactions
Example: 1 ETH loan, 0.1 ETH interest
- You pay: 1.1 ETH total
- Lender receives: 1.0975 ETH (interest minus 2.5% fee)
- Platform receives: 0.0025 ETH
Tips for Borrowers
- Use Safe Guard Mode if possible—better rates, no deposit
- Shop around for the best interest rates
- Borrow conservatively—don't max out LTV
- Repay early to save on interest
- Set reminders before maturity
- Keep ETH for repayment in your wallet