How it works
Who can lend?
Managers of portfolios decide who can lend into each portfolio and whether portfolios are permissioned or permissionless.
For permissioned portfolios, lenders can follow steps provided by the portfolio manager to gain access to the portfolio.
How are portfolios managed?
Managers make decisions about issuing new loans, managing relationships with borrowers, and configuring portfolios. Lenders are responsible for conducting diligence on managers and portfolios before lending.
When can lenders withdraw?
Lenders can withdraw funds only after the end of the portfolio's investment period ("Close date"). Funds are locked up until the portfolio’s close date is reached.
Can lenders transfer portfolio tokens?
No, portfolio tokens are also non-transferrable at present.
What are protocol fees and manager fees?
Each time a loan is deployed from a TrueFi Marketplace portfolio, a protocol fee of 0.50% per annum is sent to the TrueFi protocol treasury (0x2a5). Portfolio fees are configured by the portfolio's manager.
For example: in a portfolio where portfolio fee is set to 0.25%, when a 10M USDC loan with duration of 180 days is disbursed, (a) 10M would be transferred to the borrower from the portfolio, (b) a protocol fee of 24,657.53 USDC would be transferred to the protocol treasury (=10,000,000 USDC * (180/365) * 0.50%), and (c) a portfolio fee of 12,328.77 USDC would be transferred to the manager's wallet (=10,000,000 USDC * (180/365) * 0.25%).