Calculation Examples
Let's walk through specific scenarios to understand loan economics.
Example 1: Standard Loan with Timely Repayment
| Parameter | Value |
|---|---|
| Collection | TON Diamonds |
| Floor price | 100 GRAM |
| Strategy | Balanced (LTV 60%) |
| Loan amount (principal) | 60 GRAM |
| Annual rate | 60% (6000 BPS) |
| Duration | 14 days |
Interest calculation:
Interest = 60 x 6000 x (14 x 86400) / (10000 x 31536000)
= 60 x 6000 x 1209600 / 315360000000
= 1.38 GRAM
Total repayment for borrower: 60 + 1.38 = 61.38 GRAM
Lender income: 1.38 x 90% = 1.24 GRAM
Protocol fee: 1.38 x 10% = 0.14 GRAM
Example 2: Early Repayment
Same conditions, but the borrower repaid after 5 days instead of 14.
Calculation:
Maximum interest for 14 days = 1.38 GRAM
Actual interest = 1.38 x 5/14 = 0.49 GRAM
Total repayment: 60 + 0.49 = 60.49 GRAM
Borrower savings: 1.38 - 0.49 = 0.89 GRAM
Example 3: Instant Repayment (Minimum Period)
Borrower took and returned on the same day (after 2 hours).
Calculation:
Actual time: 2 hours = 7200 seconds
Minimum period: 1 day = 86400 seconds
Minimum applies: 86400 seconds
Interest = 1.38 x 86400 / (14 x 86400) = 1.38 x 1/14 = 0.10 GRAM
Total repayment: 60 + 0.10 = 60.10 GRAM
Example 4: Default
Same conditions, borrower didn't repay within 14 days. Lender claims the NFT.
What the lender receives:
- NFT from TON Diamonds collection (floor price ~100 GRAM) — the only compensation
- The principal (60 GRAM) is not returned — the GRAM was already disbursed to the borrower
- Lender pays service fee: 1.38 x 10% = 0.14 GRAM + gas
Lender's bottom line:
- Spent: 60 GRAM (issued to borrower, will not return) + 0.14 GRAM (fee) + ~0.05 GRAM (gas)
- Received: NFT worth ~100 GRAM
- Net result: ~100 GRAM (NFT) − 60.19 GRAM (principal + fee + gas) ≈ +40 GRAM
On default, the lender effectively buys the NFT for the previously-disbursed principal + service fee + gas. This is profitable when the NFT is worth more than the principal (typically the case — NFTs are accepted at 45–75% LTV). If the price drops below, the lender takes a loss.
Example 5: Conservative Strategy
| Parameter | Value |
|---|---|
| Collection | Whales Club |
| Floor price | 200 GRAM |
| Strategy | Conservative (LTV 45%) |
| Loan amount | 90 GRAM |
| Annual rate | 40% (4000 BPS) |
| Duration | 7 days |
Interest = 90 x 4000 x (7 x 86400) / (10000 x 31536000)
= 90 x 4000 x 604800 / 315360000000
= 0.69 GRAM
Lender income (7 days): 0.69 x 90% = 0.62 GRAM
Safety margin: NFT is worth 200 GRAM, loan is 90 GRAM. NFT price can drop 55% (to 90 GRAM) and the loan is still collateralized.
Preset Comparison Table
For a collection with 100 GRAM floor price, 14-day term:
| Preset | Principal | Rate | Interest | Lender Income | Safety Margin |
|---|---|---|---|---|---|
| Conservative | 45 GRAM | 40% | 0.69 GRAM | 0.62 GRAM | 55% price drop |
| Balanced | 60 GRAM | 60% | 1.38 GRAM | 1.24 GRAM | 40% price drop |
| High Yield | 75 GRAM | 80% | 2.30 GRAM | 2.07 GRAM | 25% price drop |