Repayment Frequency

Flexible Repayment Schedules: Fixed Initially, Adjustable for Decreases

Credit Vaults offer control over repayment schedules, but with limitations in V1:

  • Fixed at Launch: Borrowers define the initial repayment frequency (in days) during pool creation. This establishes how often repayments occur (e.g., every 30 days).

  • Decreasing Frequency: Borrowers can adjust the repayment frequency downward after launch without notifying lenders. This allows for potentially smaller, more frequent repayments over time.

  • Increasing Frequency (V1 Limitation): Currently, V1 of Credit Vaults does not support increasing the repayment frequency. This functionality might be available in future versions.

This approach provides borrowers with some flexibility to manage their cash flow, but prioritises the predictability of repayments for lenders in the initial version.

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