Borrowing on CollaFi
CollaFi lets you borrow HBAR against supported NFTs without selling them. Your NFT is held as collateral for the duration of the loan and is returned when you repay the principal and interest.
What you need
- A Hedera wallet supported through HashPack or WalletConnect.
- An NFT from a collection supported by CollaFi.
- Enough HBAR to cover network and transaction costs.
Connect your wallet
Visit CollaFi and select Connect Wallet. Approve the connection and sign-in request in your wallet.
On your first visit, you can create a profile with a username and email address. Your username appears across the platform and on the leaderboard. A verified email can receive transaction and repayment notifications according to your notification settings.
Warning: Notifications are an assistance feature, not a substitute for monitoring your loans. You are responsible for checking your Portfolio and repaying before the displayed deadline.
Ways to borrow
Instant Loan
- Open My NFTs.
- Find the NFT you want to use as collateral.
- Select Instant Loan.
- Review the loan amount, interest, duration, and fees.
- Approve the required wallet transactions.
Instant Loan uses the highest available eligible offer for that collection.
Choose an offer manually
- Open Collections.
- Select the collection for your NFT.
- Review the available lender offers.
- Select the offer that fits your needs.
- Choose the NFT you want to provide as collateral.
- Review and approve the required wallet transactions.
When the loan is accepted, your NFT moves to CollaFi-controlled escrow and the loan proceeds are sent to your wallet.
Repaying your loan
Each loan has a seven-day term. The active-loans section of your Portfolio shows the repayment deadline and a live countdown.
- Open Portfolio and select Borrowing.
- Find the active loan.
- Select Repay.
- Review the repayment amount.
- Approve the wallet transaction.
You may repay early without an early-repayment penalty. The full interest amount still applies, regardless of when during the term you repay.
After a successful repayment, the NFT is returned to your wallet. Your wallet must remain associated with the NFT's token so it can receive the asset.
Borrower costs
| Cost | Amount | When it applies |
|---|---|---|
| Loan acceptance fee | 1.75% of the principal | When accepting an offer |
| Interest | Collection-specific, commonly 4%-8% of the principal | Included in repayment |
The confirmation screen shows the actual amounts before you approve a transaction.
If the loan defaults
There is no grace period. If the loan is not repaid before the countdown reaches zero:
- The loan enters default.
- The lender becomes eligible to claim the NFT.
- The loss of the NFT is irreversible after it is claimed.
- You keep the HBAR originally received, less applicable fees.
Only borrow an amount you expect to repay within the seven-day term, and do not use an NFT you cannot afford to lose.
Points and rewards
Borrowers may earn points when an eligible loan is successfully repaid. Points are tied to your account, carry no monetary value, and can be used for eligible NFT rewards while available.
Get help
- Use the in-platform support chat for immediate guidance.
- Open a support ticket in the CollaFi Discord.
- Email info@w3b.studio for general inquiries.
Note: This guide is informational and does not constitute financial advice. Lending and borrowing involve risk, including complete loss of collateral.