> For the complete documentation index, see [llms.txt](https://docs.pokefi.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.pokefi.xyz/readme.md).

# Introduction

PokeFi is a peer-to-peer lending marketplace where collectors borrow USDC against their graded Pokémon cards, and lenders earn yield by funding those loans. Every card that backs a loan is physically vaulted, insured, and represented on-chain as a title token. Every loan, repayment, and default is recorded transparently on Solana.

{% hint style="info" %}
PokeFi is in Public Beta. Loans settle in USDC on Solana. Collateral is limited to a curated whitelist of liquid, high-population graded cards while the platform builds its loss history. Read the [Security](/reference/security.md) page before using real funds.
{% endhint %}

***

## The Idea

The graded Pokémon card market is large, appreciating, and almost entirely illiquid. A collector holding a PSA 10 Base Set Charizard is sitting on six figures of value they cannot touch without selling the card, which triggers taxes, forfeits future upside, and parts them with an asset they may deeply want to keep.

PokeFi turns that dormant collateral into liquidity without forcing a sale. A collector puts up a vaulted card, receives USDC, and reclaims full title to the card when they repay. On the other side, USDC holders get a new source of yield backed by a real, appraisable, insured object rather than purely crypto-native risk.

We build for two users at once:

* **Borrowers** are collectors who want liquidity against cards they do not want to sell.
* **Lenders** are USDC holders who want yield backed by tangible, recoverable collateral.

***

## Why It Works

Graded Pokémon cards are among the most objectively appraisable collectibles in the world. Grading companies publish **population reports**, an authoritative record of exactly how many copies exist at each grade, so scarcity and value can be measured rather than guessed. A graded card typically trades for several times its raw equivalent, and blue-chip cards have deep, observable sales histories.

The physical-to-digital custody bridge is also proven. Vaulting providers already tokenize graded cards on-chain: a collector ships a card to an insured, monitored vault, the card is authenticated, and a token representing legal ownership is minted. PokeFi builds lending on top of that foundation.

***

## How It Works

PokeFi has two front doors from one marketplace.

### Borrow against your cards

1. Vault a graded card, or select one you have already vaulted.
2. See an instant estimated borrowing range based on the card's market value.
3. Request a loan by choosing the amount, the term, and the maximum interest rate you will accept.
4. Receive USDC directly to your wallet once a lender funds the request.
5. Repay principal plus interest any time before maturity to reclaim full title to your card.

### Supply USDC and earn

1. Browse open loan requests, each showing the collateral card, grade, population data, current reference price, requested loan-to-value, term, and yield.
2. Fund a loan you like, peer-to-peer.
3. Earn interest paid in USDC. If a borrower defaults at maturity, you take ownership of the vaulted card or its liquidation proceeds.

***

## Design Principles

PokeFi uses **term loans, fixed at origination**. Amount, APR, and maturity are set when the loan is funded. There are no margin calls and no mid-loan liquidations. This is the correct model for illiquid collateral, and it is far friendlier to a first-time borrower than perp-style DeFi lending. The card is only seized on default at maturity, never on a price wobble.

The card is **escrowed, not the wallet**. The on-chain title token moves into a program-controlled escrow for the loan's duration. The borrower cannot sell or move the card while it backs a live loan, and the lender cannot touch it unless the loan defaults.

Everything is **legible**. Loan terms, collateral identity, funding, repayment, and default are all on-chain events anyone can audit through the public explorer.

***

## Key Terms

| Term            | Description                                                                         |
| --------------- | ----------------------------------------------------------------------------------- |
| Title Token     | An on-chain token representing legal ownership of a specific vaulted card           |
| Reference Price | PokeFi's published, blended market valuation for a card at its grade                |
| LTV             | Loan-to-value, the principal expressed as a percentage of the reference price       |
| Escrow          | A program-derived Solana account that holds the title token for the loan's duration |
| Term loan       | A fixed loan with amount, APR, and maturity set at origination                      |
| Default         | Maturity passing without full repayment, which transfers the card to the lender     |

***

## Navigate These Docs

* New to PokeFi as a **borrower**? Start with [For Borrowers](/getting-started/for-borrowers.md).
* New to PokeFi as a **lender**? Start with [For Lenders](/getting-started/for-lenders.md).
* Want the mechanics? See [How a Loan Works](/core-concepts/loan-lifecycle.md), [Valuation and LTV](/core-concepts/valuation-and-ltv.md), and [Custody and Title Tokens](/core-concepts/custody-and-vaulting.md).
* Looking for technical details? See [Architecture Overview](/technical-reference/architecture.md).


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