Collateral Listing FAQ
This functionality is designed to provide better liquidity for sellers. Sellers can cash out while waiting for the deal. The instant liquidity can be considered as the upfront payment from the future buyer.
You can instantly get up to 40% of the floor price of your listing before it even sells. Meanwhile, your NFT is deposited as collateral in the pool. The upfront payment is actually provided by the instant NFT-backed loan.
When the deal is done, the buyer will pay off the loan including interests after the deal.
The amount Seller will receive = Total price - debt with interests
Yes, you can delist anytime you like. And you are also a borrower on BendDAO after the ILL. If you want to redeem the NFT, you need to pay off the loan.
Yes, you can list the collateral anytime you like.
Liquidation may happen. Since you actually take a loan when you listing. You should keep an eye on the health factor of the loan. As time passes, the accrued interest will grow making the health factor decrease, which might result in 48h liquidation protection.