> 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/guides/funding-a-loan.md). # Funding a Loan This guide walks through funding an open loan request as a lender. You supply USDC, earn fixed interest paid in USDC, and take ownership of the vaulted card if the borrower defaults at maturity. *** ## Prerequisites * A connected Solana wallet * Solana-native USDC in your wallet, enough to fund the loan * A verified profile (KYC) * A small amount of SOL for transaction fees If you need help acquiring USDC, see [For Lenders](/getting-started/for-lenders.md). *** ## Step 1: Browse Open Requests Open the **Marketplace**. By default it lists all `open` loan requests. You can filter by: * Grade and grading authority * Set and card * Collateral value (Reference Price) * Loan size (principal) * Requested loan-to-value * Term Each request card summarizes the collateral, its population at grade, the Reference Price, the requested principal and LTV, the term, and the borrower's maximum APR. *** ## Step 2: Evaluate the Loan Open a request to see the full detail before committing. Focus on: **Loan-to-value.** The principal as a percentage of the Reference Price. Lower LTV means a larger buffer protecting you against valuation error and market drawdown. A 40% LTV loan against a $100,000 card lends $40,000 against $100,000 of collateral. **The Reference Price and its comps.** PokeFi publishes the recent sold comps and population data behind the valuation. Read them. A valuation is only as good as the sales it is built from. See [Valuation and LTV](/core-concepts/valuation-and-ltv.md). **Collateral liquidity.** A high-population, actively-traded card is easier to sell on default than a thin grail. Population at grade tells you how scarce the card is. **Term and yield.** The term is how long your capital is committed. Interest is fixed at origination, so you can compute your exact USDC return before funding. **The public history.** Every loan and card links to its full event history in the explorer. Verify the collateral traces back to a real vaulted card with a valid grader certificate. *** ## Step 3: Fund the Request 1. Click **Fund Loan** on the request. 2. Choose the APR you will lend at. It must be at or below the borrower's stated maximum. The panel shows your total expected repayment (principal plus interest) and the maturity date that will result. 3. Review the summary: collateral card, principal, your APR, resulting total repayment, term, and maturity. 4. Click **Confirm** and sign the transaction in your wallet. On confirmation, the funding is atomic: * Your USDC is released to the borrower. * The **agreed APR**, the **loan-to-value**, the **total repayment**, and the **maturity date** are locked in and cannot change. * The card's title token remains in program escrow for the term. * The loan's status becomes `funded`, and a `funded` event is recorded. {% hint style="info" %} You cannot fund your own loan request. A borrower and lender must be different parties. {% endhint %} *** ## Step 4: 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. * **Partial repayments** arrive as the borrower makes them, each recorded on your loan page. * When cumulative repayments cover the total, the loan is marked `repaid`, the card's title token returns to the borrower, and you have earned your full yield. *** ## Step 5: If the Borrower Defaults If maturity passes without full repayment, you can claim the default: 1. Open the loan in your dashboard after its maturity date. 2. Click **Claim Default**. 3. Sign the transaction. The card's title token transfers to you, and you become the card's owner of record. You then have two options: * **Hold and redeem.** Ship the physical card out of the vault to keep or sell yourself. * **Liquidate.** Route the card to PokeFi's liquidation channel to have it sold and recover USDC. Because the conservative LTV means the card should be worth meaningfully more than the loan, and because the card is a real, insured, resaleable object, your recovery is buffered. {% hint style="warning" %} A default can only be claimed after the maturity date has passed. Before maturity, a funded loan cannot be defaulted regardless of how the card's market price moves. {% endhint %} *** ## Fees PokeFi takes a cut of the interest you earn, following the proven peer-to-peer lending model. Borrowers pay no platform fee. See [Fees and Economics](/reference/fees.md) for the exact structure. *** ## Related * [For Lenders](/getting-started/for-lenders.md): the lender overview * [Valuation and LTV](/core-concepts/valuation-and-ltv.md): how to read collateral value and risk * [How a Loan Works](/core-concepts/loan-lifecycle.md): the full loan lifecycle --- # Agent Instructions This documentation is published with GitBook. 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