Vendor Finance
  • Overview
    • What is Vendor Finance?
    • Vendor Finance V2
      • Use Cases
      • Benefits
        • ✅Fixed Rates
        • ✅No Liquidations
        • ✅Fixed Terms
      • Definitions
      • How To's
        • Lender First Pool
          • Navigating the Create Pool Page
          • Navigating My Pools Page
          • Navigating the Borrow Page
      • Strategies
      • Protocol Fees/Pool Type
      • Developer Documentation
    • Vendor Finance V1
      • Use cases
      • Benefits
        • ✅No Liquidations
        • ✅Fixed Rates
        • ✅Fixed Terms
      • Definitions
      • Lend
        • ➕Adding Funds
        • ➖Withdraw Funds
        • 🤝Private Pools
        • ⚠️Token w/ No Oracle
        • 🔄Lender and Rollovers
      • Borrow
      • Repay Loan
      • Rollovers
        • 🔄Lender and Rollovers
        • 🔄Steps to rollover
        • 🔄Associated Fees
        • 🔄Lend Ratio Shifts
      • Defaults
      • Collect Payments
      • My Pools Page
    • Protocol Security
  • Links
    • Team
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  1. Overview
  2. Vendor Finance V2
  3. Benefits

No Liquidations

PreviousFixed RatesNextFixed Terms

Last updated 1 year ago

Most DeFi Platforms rely on liquidations to enforce eventual repayment. Vendor uses repayment due dates.

As a borrower on Vendor you have two ways of action and under neither of them user will end up being liquidated.

  1. Payback your loan on time to reclaim your collateral. Partial repayments are supported as well.

  2. Do not payback your loan, keep the entirety of the lend token and on your collateral

Due to the lack of liquidations, tokens listed on Vendor are not prone to experiencing , which ultimately protects the holders of those tokens.

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liquidation cascades