Repayments & Syncs

Each month the borrower must make the following minimum payment to maintain good standing:

min(LA,P(IRBase+IRDRP,n12+RRn))\min \left( LA, P \cdot \left( \frac{\text{IR}_{\text{Base}} + \text{IR}_{\text{DRP},n}}{12} + \text{RR}_{n} \right) \right)
whereLA=lifetime appreciation ,P=outstanding principal\text{where} \quad LA = \text{lifetime appreciation }, P = \text{outstanding principal}

Timeline: Grace → Delinquency → Default

The borrower has a grace period to repay the debt after the new repayment is triggered. After the grace period, the borrower enters the delinquency period where they begin accruing an additional late interest rate on the outstanding principal. If the credit line has not been repaid before the delinquency period block timestamp, the credit line enters default status at which point the 3Jane credit slashing module is automatically triggered which initiates an NPL auction.

Phase
Clock Starts
Duration (typ.)
Pricing / Penalties

Grace Period

Statement date

TBD

No additional charges

Delinquency Period

End of grade period

TBD

Late-penalty APR accrues

Default Period

End of delinquency period

Late-penalty APR continues accruing

Credit line frozen; slashing module triggers NPL auction

All dates are parameterised on-chain; governance may tighten or loosen them per risk conditions. During delinquency, only principal repayments stop the penalty clock; interest-only payments are insufficient.

Merchant Cash Advance Structure

3Jane credit lines are structured as a purchase on future receivables, meaning the required repayment may not surpass lifetime portfolio growth via asset appreciation and/or cash flows since first drawing down the credit line. Therefore, the borrower must only repay the minimum between lifetime appreciation since drawing down the credit line and the interest rate plus repayment rate.

Monthly Sync & Parameter Refresh

Credit Limits and default-risk premiums are re-estimated every 30 days using the latest bank-cash, CEX balances, and on-chain asset data.

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