Users must repay loan within loan maturity term + grace period. Grace period is set for 5 days across all loan durations in the platform.

Liquidations on maturity

If loan’s maturity and grace periods have passed, loan’s underlying collateral is liquidated, exchanged to the loan asset and deposited back to the pool.

This means, for 30-days loans, collateral of the non-repaid under-collateralised loans is liquidated on the 36th day of the loan issuing (maturity + grace period). If at the time of the liquidation-by-maturity, collateral value in USDC exceeds principal amount and any accrued interest, then the excessive collateral will be available for withdrawal. All liquidations performed by RociFi admin and there is a liquidation fee of 5% applied. Note this liquidation fee is only applied once the loan’s principal and accrued interest have been fully repaid.

Price-based liquidations (only in occasional cases)

By default, loans on RociFi are not liquidated based on price. Price-based liquidations can be enacted only in occasional cases on collateralised loans (where LTV < 100%) of large sizes.

All price based liquidations are performed by RociFi admin. A liquidation threshold of 5% is applied and there is a liquidation fee of 5%. The liquidation fee is only applied if the interest and principal have been fully paid. Any remaining amount is then returned to the user. For example a loan with an initial LTV of 80% + 5% liquidity threshold would be liquidated if the loan went above 85% LTV. Note that under collateralised loans are never liquidated on price.

Punishment for non-repayment

To sum up, in case of missing maturity date: