Position Exchange

<h2 id="header-0"><strong>What is Position P2P Bond?</strong></h2><h2 id="header-1"></h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/128b6288923447d99a32702edbed6982.png" /><p></p><p>Position P2P Bonds can be used as a financial instrument, allowing users to borrow assets from other users by issuing Bonds. They’re also integrated on-chain and powered by smart contracts like Position Bonds.</p><p>Issuers can use P2P Bonds to exchange and earn fixed income from bond interest. Individuals, companies, and projects can raise funds for their businesses and projects by simply locking their assets (tokens, NFTs) as collateral.</p><h2 id="header-2"><strong>Why Position P2P Bond?</strong></h2><ul><li><strong>Risk-free</strong></li></ul><p>The issuer will have to mortgage a sufficient amount to ensure the holder does not suffer a loss when holding the bond.</p><ul><li><strong>No process required</strong></li></ul><p>No process and approval are required. Easy to raise funds with only 1 step. Issuing P2P bonds is the simplest fund mobilization with flexible loan terms and interest rates.</p><ul><li><strong>Fast and easy fundraising</strong></li></ul><p>P2P Bonds allow issuers to raise funds faster and easier since it is<strong> fully on-chain with no intermediaries</strong> and operated in a fully decentralized, trustless, and transparent system powered by smart contracts.</p><ul><li><strong>Safe and stable earning</strong></li></ul><p>Holders can claim earnings for P2P Bond safely and stably. Users can choose to hold bonds according to their attractiveness (price, YTM, duration,.. etc.)</p><h2 id="header-3"><strong>Main phases of Position P2P Bond</strong></h2><p>There are 4 status phases of Position P2P Bond:</p><ul><li><strong>Pending Phase</strong></li></ul><p>In this first phase, bonds are pending to be approved and set up. Whether you are an individual, project or company seeking financing and investment, you can issue your own bonds easily on Position Exchange by applying and providing collateral.</p><ul><li><strong>On-sale Phase</strong></li></ul><p>Position Bonds implementation powered by smart contracts. Bonds are ready to be purchased.</p><ul><li><strong>Active Phase</strong></li></ul><p>Bonds can only be active once sold out or after the &#34;On-sale&#34; phase is over. Bondholders can now Exchange or Stake your bonds which are available on pools with fixed APR.</p><ul><li><strong>Maturity Phase</strong></li></ul><p>Once the Bond reaches its maturity date, the issuer will pay back the investment plus interest. Payment to investors when bonds reach maturity will be ensured and guaranteed by Position Exchange. Bond holders can claim back face assets at this point.</p><h2 id="header-4"><strong>Sale rules</strong></h2><h2 id="header-5"></h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/82625fc8b3c8487ab93ca2e200c8e22c.png" /><p></p><h3 id="strong-sale-rules-for-issuer-strong"><strong>Sale Rules for Issuer</strong></h3><h3 id="strong-repay-rule-strong"><strong>Repay Rule</strong></h3><ul><li>Issuers must repay face assets within 7 days before the maturity date.</li><li>If the repayment is not completed within 7 days before the maturity date, issuers’ bonds will be liquidated, which means the collateral will be distributed to bondholders.</li></ul><h3 id="strong-bond-maintaining-rule-strong"><strong>Bond Maintaining Rule</strong></h3><ul><li>To maintain the bond, issuers should ensure that the LTV is less than or equal to 65%.</li></ul><h3 id="strong-liquidate-rule-strong"><strong>Liquidate rule</strong></h3><ul><li>The bond will be liquidated when its LTV reaches 80%.</li><li>When a bond is liquidated or matured, you can no longer trade it on Bond Exchange.</li><li>The system will distribute the issuer’s collateral to the holder as a percentage of holding.</li></ul><h3 id="strong-claim-assets-rule-strong"><strong>Claim Assets Rule</strong></h3><ul><li>Issuers are able to claim assets when bonds are bought.</li><li>Issuers must pay issue fee when claiming asset.</li><li>Use face assets to purchase the bonds with the issue price.</li><li>Bonds will be on-sale when it reaches the on-sale phase.</li><li>Bonds will be active once sold out or at an active date. Therefore, the maturity date may be sooner than expected.</li><li>When bonds are liquidated, you can claim the underlying assets of bond issuers even though it has not reached the maturity date.</li><li>In case the issuers do not pay investment plus interest when bonds reach maturity, the bond will be liquidated, and their collaterals will be used for payment to investors.</li><li>Exchange your bonds on tab<a href="https://position.exchange/bond-exchange/PBOND-002/POSI?type&#61;bond" rel="noopener noreferrer nofollow"> Exchange</a> after bonds are active.</li><li>In normal cases, bondholders can claim face assets when the bond reaches maturity.</li></ul><h3 id="strong-sale-rules-for-holders-strong"><strong>Sale rules for Holders</strong></h3><ul><li>Use face assets to purchase bonds</li><li>Bonds can be sold when it reaches the on-sale phase</li><li>Bonds are only active once sold out or at an active date</li><li>Bonds can be liquidated when the price reaches the liquidation price.</li><li>In this case, you can claim underlying assets of bond issuers even though it has not reached the maturity date</li><li>Exchange your bonds on tab<a href="https://position.exchange/bond-exchange/PBOND-002/POSI?type&#61;bond" rel="noopener noreferrer nofollow"> Exchange</a> after bonds are active</li><li>In case the issuers do not pay investment plus interest when bonds reach maturity, their collaterals will be used for payment to investors</li></ul><h2 id="header-6"><strong>FAQs</strong></h2><h2 id="header-7"></h2><img src="https://academy-public.coinmarketcap.com/srd-optimized-uploads/e181037fb3da49f3930bdf53147c3de8.png" /><p></p><ul><li><strong>What qualifications do issuers have to meet to issue a bond?</strong></li></ul><p>Issuers can use POSI or NFT as collateral. The condition is that the total POSI or Total NFT Par Value as collateral must be greater or at least equal to a minimum of 10,000 POSI excluding a 1% RFI fee.</p><p>Furthermore, when issuing a bond, it is necessary to fill in all the required information fields, such as values to borrow, issue price, face value, bond duration, etc.</p><ul><li><strong>What crypto can issuers use as collateral?</strong></li></ul><p>Currently, only POSI and NFTs on Position Exchange are allowed as collateral. We are working to facilitate other types of cryptos in the near future.</p><ul><li><strong>What if a bond I’m holding is liquidated?</strong></li></ul><p>When a bond is liquidated, holders can claim the underlying assets of bond issuers even before the maturity date.</p><ul><li><strong>How to purchase P2P bonds?</strong></li></ul><p>Buy your preferred bond in the<strong> <a href="https://position.exchange/bonds/p2p" rel="noopener noreferrer nofollow">P2P Bonds</a></strong> section on Position Exchange. You can purchase this bond with face assets if it’s in the on-sale phase. Read the <strong><a href="https://docs.position.exchange/products/position-p2p-bond/users-guide/how-to-purchase-a-bond" rel="noopener noreferrer nofollow">guideline</a></strong> to make it easy.</p>

Position Exchange P2P Bond - One Step Closer Towards A Complete Decentralized Ecosystem

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PositionExchange

Інші статті, опубліковані 29 вер. 2022 р.

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