Term Sheet

In order to request a loan, the Borrowers submit a Term Sheet, outlining the parameters of the deal proposed. It could be done either via LombardFi’s authorized interface, or with a direct smart contract call. The key variables include:

• The assets requested and pledged as collateral. The collateral may be a single asset or a mixed portfolio with predefined components. Upon its release, LombardFi will support ETH and all ERC20 tokens, with a wider variety to be added not long after.

• Loan origination date and duration / maturity date of the pool.

• Minimum and maximum supply of the requested token to initiate the pool. The Borrower self-imposes the size of the credit facility requested. If the minimum threshold is not reached by the origination date, the loan request is voided. In this case, Lenders can claim their tokens back.

• The annualized interest rate offered for the duration of the loan. Fixed, paid in-kind, and deposited upon a loan’s initiation.

• The collateralization level of the debt facility upon origination.

An example of the term sheet form

Using the authorized LombardFi interface, the term sheet is a no-code tool for borrowers of any kind to create pools with custom parameters. Once the request is submitted, the parameters are pushed onto the blockchain and available for deposits. The verified Borrowers are also presented on the authorized interface. This is when the bonding period begins.