Terminology

LATs (Loan Agreement tokens): LATs represent real-world loan agreements between lenders and borrowing businesses on our platform. FITs (Fractionalized Investment Tokens): are blockchain-based access tokens that record and track an Investor’s participation in a specific real-world investment arrangement with a Recipient. FITs provide utility rights to receive yield payments within the ReFi Hub platform’s ecosystem. FITs cannot be transferred, exchanged, or traded, and hold no monetary value outside the Platform.

Borrower: The entity or business that borrows funds through ReFi Hub to support their operations and mission.

Lender: Individuals or entities who provide funds to borrowers on ReFi Hub in exchange for LATs, earning returns through interest and principal repayments.

Hard Cap: The maximum funding goal set by a project on ReFi Hub, representing the ideal loan amount they aim to secure.

Soft Cap: The minimum funding goal that a project needs to achieve within a specified timeframe to proceed with its mission, and deploy the smart contract to activate the lending protocol. Default: When a business fails to meet their payment or repayment obligations as per the loan or private ownership agreement.

Collateralisation: Some businesses on ReFi Hub secure loans with real-world assets, which is known as collateralisation.

Guarantors: In certain cases, loans on ReFi Hub are backed by guarantors who ensure repayment in case of default.

Impact Assessment: The evaluation of a project's environmental, social, and economic impact to ensure alignment with sustainability goals.

Decentralized Finance (DeFi): A financial system built on blockchain technology, offering decentralized lending, borrowing, investing and trading of assets.

Smart Contract: Self-executing contracts with the terms of the agreement directly written into code. They automatically execute when predefined conditions are met.

Wallet: Your digital wallet is where you securely store your cryptocurrencies, LATs and FITs allowing you to engage with the ReFi Hub platform.

Crypto Stable Coin: A cryptocurrency that is designed to maintain a stable value, often pegged to a fiat currency like the US dollar. USDC and USDT are examples.