7 Steps on 8lends

The path for a project (borrower) on 8lends is designed for clarity, compliance, and efficiency. Below are the seven key steps from initial application to pool closure

1. Registration & Loan Application

1. Sign Up – The project creates an account on the 8lends platform.

2. Submit Loan Request — Specify the following:

   • Desired loan amount;

   • Requested term (duration);

   • Target interest rate;

   • Details of partial collateral (e.g., pledged assets or guarantees).

2. KYB & Due Diligence (Proof of Reputation)

1. Payment for KYB/DD – Projects fund the Know-Your-Business and Due Diligence processes in either USDC or $8LENDS:

   • USDС payment qualifies for a Proof of Reputation cashback (see Proof of Reputation);

   • $8lends payment is not eligible for cashback (see Payments in $8LENDS).

2. Manual Review – Our credit team verifies documentation and assesses financial health.

3. Cashback Claimability — Proof of Reputation tokens can be used to pay fines or claimed after full loan repayment.

3. Agreement & Pool Creation

1. Term Sheet – Upon successful DD, finalize:

   • Loan ceiling;

   • Final annual interest rate;

   • Maturity date.

2. Contract Signing – Execute a legal agreement between the project and 8lends.

3. Pool Setup – A non-custodial lending pool is opened; users (lenders) can begin contributing in stages.

4. Fallback – If terms cannot be agreed upon, the project may claim Proof of Reputation tokens.

4. Fundraising & Stages Mechanics

1. Sequential Steges – Funding occurs over one or more stages:

   • Timing and size of each stage are at 8lends’ discretion, based on market conditions;

   • Total of all stages cannot exceed the loan ceiling;

   • All stages share the same interest rate and maturity date.

2. Additional Pools – To raise beyond the ceiling, projects may request a new lending pool under fresh terms.

3. Disbursement – Once a stage is deemed successful, funds are released to the project immediately.

5. Loan Repayment

1. Maturity – The full principal and interest must be repaid by the maturity date.

2. Repayment Options:

   • Bullet repayment (principal + interest at maturity);

   • Principal at maturity with interest paid monthly;

   • Principal at maturity with interest paid quarterly;

   • Note: Annuity schedules are not supported.

3. Late Penalties – In the event of a delay, a penalty is assessed (see Penalties). Payment can be made in USDС or in $8LENDS.

6. Default & Collateral Liquidation

1. Default Trigger – Failure to repay beyond the grace period results in a default (see Default).

2. Collateral Enforcement – 8lends centrally initiates collateral liquidation (auction or direct sale).

3. Priority Distribution – Proceeds are distributed to lenders according to subordination waterfall: Low → Middle → High. Remaining $8LENDS cashback from Proof of Reputation (net of penalties) is pro‑rata returned to CT‑token holders.

7. Pool Closure

1. Successful Exit – Upon full repayment of principal, interest, and any penalties, the pool is automatically closed and all CT‑tokens are retired.

2. Post‑Default – For defaulted pools, closure is at the platform’s discretion after evaluating the project’s ability to resume payments.