Terminology

LATs (Loan Agreement tokens): LATs represent real-world loan agreements between lenders and borrowing businesses on our platform. FITs (Fractionalized Investment Tokens): Are non-transferable, non-exchangeable blockchain-based access tokens that represent real-world investment agreements between Investors and Recipients, providing access to yield payments within the Platform’s Ecosystem. FITs have no monetary value outside the Platform’s Ecosystem and cannot be transferred, sold, or exchanged.

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.