> 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/reference/faq.md). # FAQ *** ## General **What is PokeFi?** 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, and every loan, repayment, and default is settled transparently on Solana. **How is this different from selling my card?** Selling a card triggers taxes, forfeits future upside, and parts you with an asset you may want to keep. Borrowing against it gives you liquidity now while you retain title. Repay the loan and you reclaim full ownership of the card. You only lose the card if you default at maturity. **Why is PokeFi built on Solana?** Solana offers sub-second finality, transaction fees below $0.01, and a deep, liquid supply of native USDC. Fast, cheap, transparent settlement is exactly what a lending marketplace needs, and full on-chain transparency is a brand pillar rather than an afterthought. **Is PokeFi live?** PokeFi is in Public Beta on Solana. Collateral is limited to a curated whitelist of liquid, high-population graded cards while the platform builds its loss history. *** ## For Borrowers **What can I use as collateral?** A Pokémon card graded by PSA, BGS, CGC, or SGC, held in the PokeFi vault and represented as a title token. During beta, collateral is limited to a curated whitelist of liquid, high-population cards. Raw (ungraded) cards are not accepted. **How much can I borrow?** Up to the loan-to-value cap for your card's collateral tier, applied to its Reference Price. Beta caps are conservative, in the range of roughly 30% to 50% LTV. A $100,000 card at a 40% cap supports up to about $40,000 in principal. **How is my card valued?** PokeFi publishes a Reference Price blended from recent sold comps for the exact card at its grade, population data, and time-decayed averaging. The comps behind the valuation are public. See [Valuation and LTV](/core-concepts/valuation-and-ltv.md). **What interest will I pay?** You set a maximum APR when you request the loan. A lender funds it at that rate or lower. Interest is fixed at origination for the full term, so you know your exact total repayment up front. Repaying early does not reduce the interest owed. **Can I get my card back?** Yes. Repay principal plus interest in full before maturity and the title token is released from escrow back to you. You can also make partial repayments along the way. **What happens if I do not repay?** If maturity passes without full repayment, the loan defaults and the card transfers to the lender. You keep the USDC you borrowed, and there is no further claim against you beyond the collateral. You lose the card permanently. **Are there fees for borrowing?** No PokeFi platform fee. You pay Solana network fees (under $0.01 each) and any custody or insurance fee disclosed at vaulting. See [Fees and Economics](/reference/fees.md). *** ## For Lenders **What am I actually lending against?** A specific, authenticated, insured graded card sitting in a professional vault, represented on-chain by a title token held in escrow for the loan's term. On default, that card becomes yours. **How do I earn?** You earn fixed interest, paid in USDC, on loans you fund. Because interest is set at origination, your return does not depend on how the market moves during the term. **What protects me if the borrower defaults?** Two things: the conservative loan-to-value buffer set at origination, and the physical, recoverable, insured card behind the token. On default you take the card and can redeem it or route it to the liquidation channel to recover USDC. **Are there margin calls or auto-liquidations?** No. PokeFi uses term loans. A card is only seized on default at maturity, never because its market price moved mid-loan. This is the correct model for illiquid collateral. **Can I fund my own loan request?** No. A borrower and lender must be different parties. **Is there a passive option?** A curated lending pool is planned for after beta, letting you deposit USDC and earn a share of the book without picking individual loans. During beta, funding is peer-to-peer. **What does PokeFi charge me?** A cut of the interest you earn, in line with the standard peer-to-peer rate of around 5% of interest. No cut of principal, and nothing on interest that is never paid. See [Fees and Economics](/reference/fees.md). *** ## Custody and Collateral **Where is my card kept?** In a professional, insured, climate-controlled vault: 24/7 monitored, fine-art-grade security, fully insured while vaulted. During beta, PokeFi uses an established custody partner. **How do I know the card behind a loan is real?** Every title token maps to a card authenticated on intake against the grader's certificate and population report. PokeFi publishes proof-of-reserve attestations, and the public explorer links each loan to its collateral card, grader certificate, and vault reference. **Can I redeem my physical card?** Yes, at any time the card is not escrowed against a live loan. Redemption ships the card to you and burns the title token. A card actively backing a loan cannot be redeemed until the loan is repaid. **What if a card is counterfeit or mis-graded?** Cards are verified against the grader's records on intake, and counterfeit-slab detection is part of authentication. Cards that cannot be verified are rejected and not tokenized. *** ## Technical **What wallet do I need?** Phantom, Backpack, or Solflare. All three support Solana Wallet Adapter. Phantom is recommended for first-time users. **What is a PDA?** A Program Derived Address is a Solana account derived deterministically from a program's public key and a set of seeds. PDAs have no private key, so only the owning program can authorize actions on them. PokeFi uses PDAs as escrow accounts, so no human, not the borrower, not the lender, not PokeFi, can move a loan's collateral or funds outside the program's instructions. **What is a title token?** An SPL token with a supply of one representing legal ownership of a specific vaulted card, with metadata linking to the grader certificate, grade, set, population, photos, and vault reference. See [The Title Token](/technical-reference/title-tokens.md). **Can I inspect the programs?** The PokeFi program addresses are published and verifiable on Solana Explorer, and the source is published on completion of the security audit. See [Security](/reference/security.md). **Do I need SOL as well as USDC?** Yes, a small amount of SOL to pay Solana transaction fees, which are typically under $0.01 each. Loans themselves are denominated in USDC. **Which USDC does PokeFi accept?** Solana-native SPL USDC only. Do not use USDC bridged from another chain. *** ## Legal and Risk **Is PokeFi regulated?** PokeFi is a real-money lending product and applies identity verification (KYC) to borrowers and lenders. It is not a bank, and it does not provide financial advice. Availability may be gated by jurisdiction. Understand the risks before using it. **What are the main risks?** Collateral value can fall, an illiquid card can be slow to sell on default, valuation can be imperfect, and smart contracts can contain bugs. PokeFi mitigates these with conservative LTV, curated liquid collateral, transparent valuation, insured custody, and audited programs, but none of these eliminate risk. See [Security](/reference/security.md) for the full disclosures. --- # 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/reference/faq.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.