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  • Introduction
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    • Earn product
    • NEW! Refinance
  • How MortgageFi Works
    • Mortgage borrowers
      • Early repayment feature (ERF)
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    • Refinancing
  • Getting Started
    • Components
      • Mortgage Vaults
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      • Loan NFTs
      • Defaults
      • ERC20 Integration
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      • Referral Incentives
  • FAQ
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      • Integration Process
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  • Under-Collateralized Loans
    • What are Under-Collateralized Loans?
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  • Compared to other Lending
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  1. Getting Started
  2. Components

Defaults

Whenever a user fails to make payments within the time given for their current installment it allows any other user to trigger a default of their contract.

Whilst users are encouraged to make monthly payments, defaulting only becomes available after 45 days since the last outstanding repayment. Users can in theory choose to pay on day 44 of their payment window, however this is not recommended.

Defaulting provides an important economic design that increases yield for Earn product users. When this happens all funds tied into the mortgage contract are returned to the protocol.

IMPORTANT NOTE: There is no way to refund any of the borrower's funds at this stage, the borrower loses all funds added to the contract up to the point of defaulting.

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Last updated 1 month ago