FAQs
Borrow FAQs
How does borrowing work?
Borrow SOL or USDC using your NFTs or token as collateral. During the loan period, your NFTs will be locked in your wallet, enabling you to continue receiving airdrops, maintaining DAO access, and qualifying for snapshots. Early repayment of the loan is rewarded with a cheaper interest rate, and non-repayment will lead to liquidation and loss of the ownership of NFT or tokens used as collateral.
I forgot to repay my loan
The grace period for loans is equivalent to 1 hour per day borrowed, up to a maximum of 8 hours, after which the lender will be able to claim your NFT or your entire collateral if it’s a token loan.
Will the borrower get liquidated on price fluctuations?
No, we don’t have any liquidation based on the value of the collateral, you will get liquidated only if you don’t repay on time.
Are there penalties for defaulting on a loan, and what are the penalties for defaulters?
As a borrower, if you get liquidated, you won’t receive any droplets for this specific loan.
Do I keep my NFT during the loan?
NFTs stay locked in your wallet until loan repayment, which means you can’t interact with it during loan but can still enjoy DAO access, airdrops, and snapshots.
I can't borrow any money
If your NFTs or Tokens are not live on Rain yet, feel free to submit a request and we’ll get it listed listed right away!
How is the price of my tokens calculated?
We use both Pyth and Switcboard oracle to get the price of tokens on chain.
How is the price of my NFT calculated?
We use our own oracle to store and update every supported collections floor on-chain. We then use this to calculate the amount of SOL/USDC you can borrow based on the loan-to-value set by the lender.
Is there a grace period
Currently, the grace period for loans is equivalent to 1 hour per day borrowed, up to a maximum of 8 hours.
What is the minimum and maximum amount I can use?
The minimum amount to borrow is 10$ and there is no maximum amount.
Does Rainfi support liquid staking tokens?
Yes, it is currently possible to use MSOL and JitoSOL in our platform. More options will be added in the future.
When would I receive the amount of Droplets?
The amount of Droplets will appear to you a few moments after the loan terms end.
Why I don't fit the pool conditions anymore?
Lenders have the possibility to filter borrowers based on several criteria including, amount of loans made, total volume made, age on the borrower account and liquidation ratio, if you default on some or all of your loans, you might not be able to extend or take new loans from a pool anymore.
Lend FAQs
How does lending work?
Rain allows lenders to create their own pools and act as their own ”bank” by presetting loan terms such as LTV, accepted collections, loan length, and interest rate. This results in increased efficiency as lenders don’t have to manually lend funds or calculate loan-to-value and research floor prices. Loans are automatically accepted or rejected based on preset terms, and lenders only need to manage their pools when they want to close or optimize them.
What if the borrower doesn’t repay their loan?
If after the grace period, it hasn’t been repaid, the borrower’s NFT will go straight into your wallet.
How liquidations are handled?
For token loans, by default, if compounding is enabled the full collateral amount will be swapped via Jupiter, and the amount will be returned to your pool with a 2% fee on the swapped amount (only if the lender is in profit), otherwise, the amount will be sent to your wallet. You can disable this feature by turning off ’Compound interest’ in your pool settings.
I want to integrate Rain on my dApp
We have a plug-and-play package! You can find our SDK here: https://www.npmjs.com/package/@rainfi/sdk
What are your fees?
We take a 15% upfront platform fee out of the interest paid from the borrower for NFT loans, and 20% for Tokens loans and Mortgages, 0.85% of the swapped amount on Margin Swap and 5% fee out of the interest the pool makes when the borrower repays his loan. For each loan took using tokens as collateral, around 0.008 SOL are took to pay loan account and token account creation.
Can I pay my loan in advance
Yes, the earlier, the cheaper your interest will get. Loans can be paid back early with a minimum of 30% of total interest.
Is it possible to add multiple currencies to a single pool??
No, as of right now, only one pool can be created per user because of architechture design in our program, but we are working to make it possible.
Does the duration of my loan affect my Droplets count?
No, only the amount borrowed/lent affect the droplets, it might chnage in the future.
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