Functional Overview

How is a loan foreclosed?

The backend LTV monitoring service, constantly checks the LTV levels of the active loans (protected and unprotected).

This service receives input from the smart contracts and the price oracle service and when any of the conditions for foreclosure are verified. The smart contracts foreclosure flow is triggered, via the smart contracts execution service.

The following diagram shows the system components involved in the foreclosure flow.

Figure 1 - Loan Foreclosure system component interactions

For more information on the specific services and smart contracts invoked browse to

Foreclosure flow