# FAQ – Lending PRO V1

#### What is Zharta? <a href="#what-is-zharta" id="what-is-zharta"></a>

Zharta is a DeFi, Web3 startup specializing in implementing lending and renting protocols and infrastructure. So far, we've implemented one lending protocol for fungible tokens, Lending PRO V1, and three NFTFI protocols: an NFT-Backed Peer-to-pool Lending protocol, an NFT Renting protocol, and an NFT-Backed Peer-to-peer Lending protocol

Zharta’s Lending Offer allows holders to get liquidity from their assets without selling them, and for anyone to earn interest by financing loans.

#### What are Zharta's primary advantages for borrowers?

* **Fixed Rate Terms** - Loans feature a fixed interest rate, providing borrowers with predictability in their funding costs. This protects users from fluctuating rates associated with market liquidity changes.
* **Pro-rata APR with continuous refinancing -** Loans accrue interest on a pro-rata basis. At any point, borrowers may fully repay the loan or refinance into improved terms without operational friction.
* **Dynamic improvement of loan conditions -** Borrowers can actively optimize loan terms by accepting better offers and refinancing their loans.

#### What are Zharta's primary advantages for lenders?

* **Customizable open offers** - Structure lending offers with granular control over scope and risk exposure. Offers can be configured across multiple dimensions, such as accepted collateral tokens, loan terms, allowance limits, and optional advanced features, enabling precise capital allocation and risk management.
* **Refinancing loans** - Lenders can make offers on active loans. Once accepted by the borrower or lender, ownership is seamlessly transferred through refinancing.
* **Transferable loans** - Lenders can exit positions at any time by selling their loans, improving balance sheet flexibility and capital rotation.
* **Liquidation Flexibility -** Our loan system allows for single or multiple liquidation options. Users can choose oracle-less liquidations using maturity or call executions, or traditional DeFi oracle-dependent LLTV methods. This approach increases optionality for different risk management and strategic needs.

#### Which browsers and devices are supported?

We currently support desktop devices, tablets, and mobile devices (Android and iPhone). We recommend Google Chrome or Firefox for a better experience.&#x20;

#### Can anyone have access to the platform?

For the time being, our Lending PRO V1 platform requires whitelisting. Additionally, for permissioned tokens, users must go through our KYC process.

To get whitelisted or request KYC onboarding, you can contact us via <support@zharta.com>&#x20;

#### Does Zharta charge Borrowers a fixed fee?&#x20;

No.

#### Can I borrow/lend directly from my Gnosis Safe and other smart contract wallets?&#x20;

Yes. Our protocol supports EIP-1271, allowing for signature verification when an account is a smart contract. Zharta's smart contracts support Gnosis Safe multi-sig, but the dApp is not yet supported.

#### Does Zharta take custody of the assets I use as collateral for loans? <a href="#when-i-apply-for-a-loan-on-an-nft-does-zharta-take-my-nft" id="when-i-apply-for-a-loan-on-an-nft-does-zharta-take-my-nft"></a>

No. Zharta doesn't get custody of your assets. Assets used as collateral are held in a smart contract escrow. This means that the assets are held by the smart contract itself and are always subject to the pre-agreed business rules of the loan. In the case of permissionless tokens, the smart contract is a pool. In the case of permissioned tokens, there is one smart contract per borrower.

#### What are smart contracts? How do they work? <a href="#when-i-apply-for-a-loan-on-an-nft-does-zharta-take-my-nft" id="when-i-apply-for-a-loan-on-an-nft-does-zharta-take-my-nft"></a>

Smart contracts are programs stored within the blockchain that work as self-executing contracts. Once the two parties agree upon the terms, these are coded into the contract and deployed to the blockchain, thus rendering the transaction irreversible, traceable, and transparent.

#### If the value of the collateral I used for my loan decreases, could my assets be liquidated? <a href="#couldibeliquidated" id="couldibeliquidated"></a>

If your loan includes a partial liquidation clause, a partial liquidation may be triggered if the value of your collateral decreases enough for the loan’s LTV to reach its predefined Liquidation LTV.

When this happens, a liquidator may step in to liquidate or claim only enough collateral to reduce the loan’s LTV back below the Max LTV, returning the loan to a healthy state. The loan remains active after a partial liquidation.

Loans without a partial liquidation clause are not eligible for partial liquidation and are only subject to liquidation upon default.

#### If I repay early, will I still pay interest for the full, original loan term?

No. Interest is charged *pro rata –* it accrues on a per-day basis. You'll only be charged for the days that elapse until you repay the loan.

#### How is the liquidation process handled? <a href="#how-can-i-get-a-loan-against-my-nft-.1" id="how-can-i-get-a-loan-against-my-nft-.1"></a>

V1 supports two types of liquidation: **partial liquidation** and **full liquidation**. In both cases, liquidators earn a liquidation fee.

**Partial liquidation** is available only for loans with a partial liquidation clause. It may be triggered when the value of the collateral decreases enough for the loan’s LTV to reach the **Liquidation LTV**. When this occurs, a liquidator may liquidate or claim only the amount of collateral required to reduce the loan’s LTV back below the Max LTV, returning the loan to a healthy state. The loan remains active after a partial liquidation.

**Full liquidation** occurs when a loan is not repaid on time after reaching maturity or after a call option has been exercised. In this case, the loan is fully liquidated. A liquidator may acquire the full collateral position at a discount. The proceeds are used to repay the lender’s outstanding debt, with any remaining value returned to the borrower.

To learn more about liquidations, see [As a liquidator](https://zharta.gitbook.io/zharta-welcome-kit/lending-pro-v1/as-a-liquidator).

#### Which assets can be used as collateral at Zharta? <a href="#how-can-i-get-a-loan-against-my-nft-.1" id="how-can-i-get-a-loan-against-my-nft-.1"></a>

You can check them out [here](https://zharta.gitbook.io/zharta-welcome-kit/lending-pro-v1/supported-markets-and-chains). More markets coming soon!

#### **How do I ask Zharta to list a new market?** <a href="#which-wallets-can-you-use-to-connect-to-zharta" id="which-wallets-can-you-use-to-connect-to-zharta"></a>

We are always evaluating the market and adding new assets according to our metrics. If you would like us to add a specific asset to our markets, contact us, and we will make sure to study that possibility. You can reach us through [X](https://x.com/Zharta), our [Discord server](https://discord.com/invite/zhartafinance), or by emailing us at <support@zharta.com>

#### How can I get an instant loan against my assets?

We are working to ensure all supported markets have base offers. There can be exceptions due to available liquidity and market conditions.&#x20;

#### How can I become a lender? <a href="#is-zharta-safe-to-use" id="is-zharta-safe-to-use"></a>

You can make direct offers for loan requests or active loans, or create an open offer. If your offer is competitive, a borrower may accept it.

#### **Which wallets can you use to connect to Zharta?** <a href="#where-can-i-find-more-information-about-zharta" id="where-can-i-find-more-information-about-zharta"></a>

We currently support MetaMask, Coinbase, and Rainbow Wallets. If you prefer to use a different type of wallet, you can use WalletConnect to do so.

#### **On which networks does Zharta operate?** <a href="#what-is-zhartas-vision" id="what-is-zhartas-vision"></a>

We currently only operate on the Ethereum Network, but we are working on changing that. Stay tuned!

#### Is Zharta safe to use? <a href="#what-is-zhartas-vision" id="what-is-zhartas-vision"></a>

When building our blockchain protocol, we ensured our smart contracts were 100% secure, so there was no possibility of obstruction. Even our programming language, Vyper, was chosen with efficiency, simplicity, and security in mind. Finally, because our users' peace of mind is our top priority, all of Zharta's smart contracts are audited.

Check the audits [here](https://zharta.gitbook.io/zharta-welcome-kit/lending-pro-v1/security-audits).

#### Where can I find more information about Zharta? <a href="#what-is-zhartas-vision" id="what-is-zhartas-vision"></a>

[Website](http://zharta.io/) | [Discord](https://discord.gg/eXnvAc8yTe) | [Telegram](https://t.me/+xhhs7hdFM0VhODVk) | [Twitter/X](https://twitter.com/ZhartaFinance)

#### Does Zharta have Terms and Conditions? <a href="#what-is-zhartas-vision" id="what-is-zhartas-vision"></a>

Yes. You can find them [here](https://app.gitbook.com/o/kuf7YlhZE0VhvKdkDxV0/s/UjrjglbdIn7XDGXWmDdN/~/changes/6luC7dMdW9Y10lXjH6b4/terms-and-conditions).