First, the lender browses through the NFT series and selects a series that they would accept as collateral for the loan offer they’re about to provide.
Second, the lender selects the loaning period options and the size of the loan that they feel comfortable with. The lender finalizes the offer, transferring their assets to the ARTSY protocol. They have selected NFT series, loan period(s) and loan size. The interest is decided by the protocol and cannot be altered.
Third, the borrower browses through the loan offers that they can take based on the NFT series of the NFT they own. The borrower cannot choose the size of the loan or the interest but can choose the loan period based on the options provided by the lender.
Fourth, the lender finalizes the deal, which transfers their NFT to the ARTSY protocol. The borrower then receives the loan minus the agreed upon interest.
At any time during the loan period, the borrower may pay back the loan to receive their NFT back, ending the deal. The lender immediately gets their assets returned.
If the lender has indicated that they can be contacted, the borrower may request an extension to the loan. If the lender agrees, the lender selects an extension period and finalizes the offer. The borrower then has to pay the interest for that period up front to finalize the deal on the extension.
If the loan period has ended, no extensions were agreed upon and the borrower has not repaid their loan, the borrower has defaulted on their loan. The NFT gets send to the lender and the deal ends.