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Repayments & Renegotiations
Outstanding loans can also be renegotiated. Renegotiations are helpful when the proposed loan terms are not strictly better than the outstanding ones (otherwise lenders would choose to instantly refinance). For instance, a renegotiation offer might have a higher principal but also a higher APR.Lenders can add any an origination fee when renegotiating. In Gondi V1, when a borrower accepts a renegotiation offer, the lenders must transfer not only the principal but also the accrued interest.Borrowers do not need to repay the full loan amount but only any difference in principal between the outstanding and new offer.Loan renegotiations are not limited to the corresponding lender(s) but available to everyone. Renegotiation offers are only valid while a loan is outstanding and is not past its due date.
Gondi loans do not depend on oracles or minimum loan-to-value ratios (LTV). Loans can be repaid at any time before its due date.Borrowers are only liable for the interest accrued up until the repayment time (and not the full duration of the loan).If no repayment is made before due date, the loan defaults.