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description: Making Use of The Money Market to BUY SMART
---

# Buyer Guide

{% hint style="info" %}
**Tip:** It is a good idea to take a look at definitions before kicking-off with xBank!
{% endhint %}

### **Why BUYING with a money market?**   &#x20;

A basic idea of the money market is to provide liquidity to those who are looking for opportunities. With sufficient money offers you will be able to **PAY LESS NOW** or **BUY MORE**, with a better money mindset, meanwhile, enjoying full premiums of NFT assets.&#x20;

### &#x20;**How to buy NFT with the money market?**   &#x20;

Navigate to "Buy NFTs" -> "Market" to find your favorite NFT(s) on our market aggregator. Click on the NFT you are interested in to find details of it with different payment plans defined by the percentage of down payment, loan period and installment dates. Picking up a payment plan with suitable interest rate for you and then pay as you go!&#x20;

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2FpDRRU1ofSYgSOdzSj8Jk%2Fimage.png?alt=media&#x26;token=0f36aa6b-6d9a-404b-a086-40e15295a778" alt=""><figcaption></figcaption></figure>

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2FeKH0NHteoVdbUNksehNj%2Fimage.png?alt=media&#x26;token=61eff176-925f-4efd-94ca-3fbf7eb074e3" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Notice that when you successfully create a payment plan:**&#x20;

1. Your NFT will be temporary staked into a vault as a collateral until you pay out loans.&#x20;
2. Before each payment date due, repayment should be made by that date in case of collateral liquidation.&#x20;
3. Late repayment is not supported.  Overdue cases will be considered as default cases and trigger liquidation process. The collateral will be liquidated to lenders automatically.
{% endhint %}



### **How much I can borrow?**   &#x20;

The maximum amount you can access depends on the money terms offered by LP.&#x20;

For example, if an LP is willing to provide a loan fund of 70% of the NFT collection you want to purchase, then:

the maximum fundable amount of your transaction = the current floor price of the collection \* 70%&#x20;

In the other word, you can pay the minimum 30% down payment to purchase the NFT.

In addition, the maximum loan amount cannot exceed the current floor price of this NFT collection.



### &#x20;**What kind of cryptocurrencies do I need to pay/repay?**   &#x20;

Currently, assets on xBank are priced by ETH and interests accrued by the payment plan will also based on ETH. &#x20;

### &#x20;**How much would I pay in interest for my payment plan?**  &#x20;

&#x20; $$Total\ Payment = Loan\ Amount \times [ \frac{i \times (1+i)^n}{(1+i)^n-1} ]$$

where

&#x20;   i = interest for each payment （Annual Percentage Rate / 365 \* days between each repayment）

&#x20;   n = number of payments  &#x20;

Interests Accured = Total payment - Loan amount

### &#x20;**What happens if my payment plan is overdue?**   &#x20;

If you failed to repay the loan by the due date, the loan will become defaulted upon the date. You will no longer be able to repay the loan to get your NFT back, and the NFT will be liquidated to the LP.

### &#x20;**When do I need to make my repayments?**   &#x20;

&#x20;According to the "loan period" and "number of installments" you selected when creating the payment, the system will present the repayment schedule, which will include the date and amount of each repayment date.

<mark style="color:red;">You need to complete the repayment before the end of each repayment date.</mark>



### **How to make repayments?**   &#x20;

Navigate to "Buyer" -> "Loans" to find all loans records that you have, and click any record under the "Open" tag, which shows the ongoing payment plans in the "Loan Details” page. By clicking on the "Repay" button to initial a repayment process. Besides, the repayment is supported to pay off by clicking the "pay off" button at any time before the due date.

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2FcxLmtah0SF40bmHPFVYY%2Fimage.png?alt=media&#x26;token=4b6077cc-550c-424c-886f-227aa3be0596" alt=""><figcaption></figcaption></figure>

### **How to avoid liquidation of a payment plan?**   &#x20;

The liquidation of a loan depends on whether you repay your plans on time. You will get the collateralized NFT as long as you make the repayments accurately or pay off the plan before the due date. Otherwise, it will be transferred to the lender. Plus, if you list the collateralized NFT to the market place and sell it with an appropriate price, you will get the profit and repay the loan and interest automatically.



### How to list my collateralized NFT for selling?

You can find and click the "Collateral List" button on "Buyer" -> "Loans" -> "Loans Details" page, and list your collateralized NFT at any time in the duration. But the selling price of your collateralized NFT should be higher than unpaid loan amount with interests accrued. If the collateralized NFT is sold, the selling income will first be sent as a repayment for paying off the loan and interests accrued, then you will get the remaining amount.&#x20;

<mark style="color:red;">During the listing, you still need to keep repaying the loan until it's sold or finally paid off, rather than being liquidated.</mark>

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2F4sBZI1RxWXQtFLhe2fhB%2Fimage.png?alt=media&#x26;token=db6d243e-8322-4220-97c3-0a3a1aa73f34" alt=""><figcaption></figcaption></figure>



### How do I know whether the collateralized NFT is being listed and sold appropriately?

You can check the listing history under the "Loans Details" -> "Listings". For this section, you can check your listing statements at any time.

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2Fho0ZmVw8T4qtT6kIYXqX%2Fimage.png?alt=media&#x26;token=7c129abb-5b4b-4cee-ad94-f932a2dc4ff5" alt=""><figcaption></figcaption></figure>

**For the "Listing" action, you might see the following status:**

<mark style="color:green;background-color:green;">Listed</mark>: The collateralized NFT is being listed to the market place successfully.

<mark style="color:red;background-color:red;">Failed</mark>: The collateralized NFT failed to list to the market place.

<mark style="color:yellow;background-color:yellow;">Canceled</mark>: The collateral listing was canceled from the market place. You can list it again in the loan duration.

<mark style="color:blue;background-color:blue;">Sold</mark>: The collateralized NFT was sold on the market place. In this case, you should've repaid the loan automatically and received the remaining amount.

<mark style="color:purple;background-color:purple;">Expired</mark>: The listing is expired, which means the collateralized NFT is unlisted from the market place due to the expiration. You can list it again in the loan duration.

**For the "Cancel Listing" action, you might see the following status:**

<mark style="color:green;background-color:green;">Succeeded</mark>: The collateral listing was canceled from the market place. You can list it again in the loan duration.

<mark style="color:red;background-color:red;">Failed</mark>: The collateralized NFT failed to cancel listing from the market place due to errors.



### Can I check when I repay the loans? Even for each plan.

For sure! You can find out your repayment history under the he "Loans Details" -> "Repayment History". For each record, it tells multiple information that you might need, including accurate time and amount, even which installment you've repaid.

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2F0euFTqbEueppkH3pJ2gh%2F9708bf09-7a35-478e-b635-b41b253308e2.jpeg?alt=media&#x26;token=ee85b6e2-ac39-47a4-ac68-a28756e9bebd" alt=""><figcaption></figcaption></figure>



### What's the fomulas of the PnL (Profit and loss) calculation?

<figure><img src="https://1985403780-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F479cQj8eVkSIxkte8iCo%2Fuploads%2FYfPqF75nXPfK9eojN95v%2Fimage.png?alt=media&#x26;token=cb0d831d-542e-4736-a1b1-54607cc642d6" alt=""><figcaption></figcaption></figure>

On the "Loan Details" page, you can obviously see a PnL amount for users to check the profit margin. But how Xbank calculate it?

Before explaining the calculations, we have to let you know except the collateralized NFT is sold and make the actual profit or you violate the repayment and make the actual loss , the other caculations are extimations for reference.

For those loans in 'Open' column, the PnL is a real-time figure, counted by:

_Current floor price - (Floor price loan generated + real-time generated Interest + Service fee)_

For those loans in 'Closed' column, the Pnl is a fixed figure, and it depends on different circumstance:

1. When status = <mark style="color:blue;background-color:blue;">Sold</mark><mark style="color:blue;">,</mark> the figure is accurate and actual, and it counted by:

_NFT selling price - (NFT buying price + generated Interest + Service fee)_

2. When status = <mark style="color:purple;background-color:purple;">Paid off</mark>, it counted by:

_Floor price loan paid off - (Floor price loan generated +  generated Interest + Service fee)_

3. When status = <mark style="color:red;background-color:red;">Overdue</mark>, the figure is accurate and actual, and it counted by:

_Minus (Down paymment + generated repayment + generated Interest + Serveice fee)_



