Role of the Borrower
- Borrower (Community Member) submits a proposal to the community for loan consideration.
- Borrower (Community Member) completes ID / credit verify & is scored for collateral.
- The Borrower locks collateral in smart contract while borrowing funds.
- The Foundation submits the loan proposal to the community through the Cobalt Dashboard for review by the community for 7 days (Community Votes: Fund or Deny) if approved: funds disbursed to borrower / if loan denied -collateral is unlocked.
- Borrower repays loan with interest, then unlocks collateral / Defaults on loan – forfeits collateral.
- Interest on loan goes to treasury / Ultimately redistributed into community (Dividends)