> 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/getting-started/for-lenders.md). # For Lenders This page covers everything you need to fund loans and earn yield on PokeFi. As a lender you supply USDC to fund a collateralized loan, earn fixed interest paid in USDC, and take ownership of the vaulted card if the borrower defaults at maturity. *** ## Before You Begin ### A Solana Wallet PokeFi is non-custodial. You fund loans directly from your wallet, and interest is repaid to it. Supported wallets: * [Phantom](https://phantom.app) * [Backpack](https://backpack.app) * [Solflare](https://solflare.com) If this is your first time using a Solana wallet, Phantom gives the smoothest setup. Install the extension, create a wallet, and store your recovery phrase securely. ### USDC on Solana All loans on PokeFi are denominated in USDC on the Solana network. You need USDC in your wallet to fund a loan. Acquire it through any exchange that supports Solana-native withdrawals (Coinbase, Kraken, Binance) or through a decentralized exchange such as Jupiter. {% hint style="warning" %} Use **Solana-native USDC**, not USDC bridged from another chain. PokeFi only accepts native SPL USDC. {% endhint %} A small amount of SOL is also needed to pay Solana transaction fees, typically less than $0.01 per transaction. ### Verification Lenders complete identity verification (KYC) before funding a loan, consistent with operating a real-money lending product. *** ## Browsing Loan Requests The PokeFi marketplace shows all open loan requests. Each request card displays everything you need to price the risk yourself: * The collateral card, its grade, and its grading authority * **Population data** at that grade, so you can judge scarcity * The **Reference Price**, PokeFi's published valuation for the card * The requested **principal** and the resulting **loan-to-value** * The **term** and the borrower's **maximum APR** * The card's status and vault reference You can filter by grade, set, collateral value, loan size, term, and requested LTV. *** ## What to Look For **Loan-to-value.** LTV is the principal as a percentage of the Reference Price. A loan at 40% LTV against a $100,000 card means $40,000 is lent against $100,000 of collateral, leaving a $60,000 buffer. Lower LTV is safer for you: it protects against valuation error and market drawdown, and it improves recovery if you have to liquidate. **Collateral liquidity.** A high-population, actively-traded chase card is easier to value and to sell than a thin, ultra-high-value grail. During beta, collateral is curated toward liquid cards, but liquidity still varies across the whitelist. **The Reference Price and its inputs.** PokeFi publishes the comps and population data behind each valuation. Review them. See [Valuation and LTV](/core-concepts/valuation-and-ltv.md). **Term and yield.** Longer terms lock your capital up for longer. The interest is fixed at origination, so you know your exact return in USDC before you commit. *** ## Funding a Loan When you fund an open request, you agree to an APR at or below the borrower's stated maximum. At that moment the loan's terms lock in: * Your USDC is released to the borrower. * The card's title token is held in program escrow for the term. * The **total repayment** (principal plus fixed interest) and the **maturity date** are set and cannot change. See [Funding a Loan](/guides/funding-a-loan.md) for the step-by-step guide. *** ## How You Earn The borrower repays principal plus interest in USDC. Interest is fixed at origination, so your return does not depend on how the market moves during the term. When the loan is repaid in full, the card's title token returns to the borrower and you have earned your yield. *** ## What Happens on Default If maturity passes without full repayment, you can claim the default. The title token transfers to you, and you have two options: * **Hold and redeem** the physical card, shipping it out of the vault to keep or sell yourself. * **Use the liquidation channel** to have the vaulted card sold and recover USDC. Because the collateral is a real, insured, resaleable object rather than a purely on-chain asset, recovery is materially more robust than typical NFT lending. Your protection is the LTV buffer plus the physical, recoverable card. {% hint style="info" %} There are no automatic liquidations mid-loan. A card is only ever seized on default at maturity, never because its market price moved during the term. This is the correct model for illiquid collateral. {% endhint %} *** ## The Curated Pool (Post-Beta) Peer-to-peer funding, where you pick individual loans, is the beta model. A curated lending pool is planned for after beta: you deposit USDC, receive a yield-bearing share, and capital is spread across many loans automatically under managed risk parameters. See [Fees and Economics](/reference/fees.md) for how the pool will be structured. *** ## Next Steps * [Funding a Loan](/guides/funding-a-loan.md): the full step-by-step guide to funding a request * [Valuation and LTV](/core-concepts/valuation-and-ltv.md): understand how collateral is priced and how risk is bounded * [How a Loan Works](/core-concepts/loan-lifecycle.md): follow a loan from request to settlement --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.pokefi.xyz/getting-started/for-lenders.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.