Accessing Credit Facility

Understanding Borrowing, Interest, and Repayment

When you borrow assets from our Credit Facility, it's important to understand how interest and repayments are handled. Here's a simple breakdown:

Credit Balance

• What is it? Your credit balance (creditBalanceUsed) represents the total amount you owe. This includes:

  • The amount you originally borrowed.

  • Base interest that accrues over time.

  • An additional interest that is a multiple of the Base Interest (known as InterestDeltaPB).

Making a Repayment

• How does it work?

  • When you decide to repay part of your debt, the amount you repay reduces your overall balance.

  • In the case of using the Shared Credit pool, behind the scenes, your repayment is split into two parts:

    1. InterestDeltaPB Portion: This is a small portion of your repayment that stays within our system. It helps cover additional costs and is stored in a repaymentFees pool.

    2. Net Repayment: The rest of your payment goes directly towards reducing the amount you owe (including the original amount borrowed and the base interest).

What This Means for You

• When you make a repayment, you see your total balance go down.

• Our system ensures that part of your repayment is used to maintain the service (InterestDeltaPB), while the majority directly reduces what you owe.

In essence, while you repay, a small portion of your payment helps sustain the system, and the rest helps you clear your debt.