Loan Repayment
In the event of the failure to redeem the loan at the maturity date, Presta Token Holders will be offered the following options:
Extend the Loan for one year subject to the payment of an extension fee equal to 5% of the Liquidity Facility. The additional one year of interest will cover interest during the loan extension period.
Commencement of liquidation of the asset at the established Asset Value. The additional one-year interest will be applied to the outstanding principal of the Liquidity Facility in the event of settlement at maturity. In the event that the borrower fails to settle the Liquidity Facility on the maturity date, the additional one year of interest will cover interest during the liquidation period. In addition to the primary interest obligation, a default penalty of 5% shall accrue on the principal loan amount until the settlement of the obligation. The liquidation price will be set at the undiscounted average appraisal value and will be adjusted downwards until reaching the greater of the average liquidation appraisal value or outstanding loan obligation plus 25%.
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