Promissory Note

When a loan is initiated, the lender receives a Promissory Note in the form of an ERC-721 token. This note serves as a digital record of the loan agreement, detailing the loan amount, interest rate, repayment deadline, and collateral information. While the Promissory Note can be transferred to another wallet, it must be in the lender's wallet at the time of claiming the collateral or repayment funds.

It is essential to keep the Promissory Note secure. If the Promissory Note is lost or burned, the lender will lose the ability to claim repayment funds or the collateral, making it a critical component of the loan process. The Promissory Note also serves as proof of the loan and enables the lender to resell loans on the secondary market.