Borrow

To borrow from Liquidity Pool, the Issuer first needs to get enough support from Backers (JOT noteholders). Let’s say an Issuer wants to raise $1m and the Minimum first loss ratio is 10%, the Issuer needs to raise $100k from JOT noteholders before raising $900k from Liquidity Pool. In other words, the amount of leverage (Leverage Ratio) is a multiple of the amount raised from JOT noteholders: Target Amount: currency amount to be raised Term Length: Financing duration Start Date: the date on which the term starts Trustee: Trusted independent third party acting on behalf of Funders For the senior tranche there are two other variables: Interest Rate and Yield. Interest Rate is a coupon rate that senior tranche token (SOT) will accrue at and Yield to Maturity, an input parameter needed to calculate the price of SOT.