Liquidation

For cryptocurrency assets linked in kind, automated liquidation procedures are of the utmost importance. This is because it must maintain decentralization and have compulsory legal effect. Liquidation procedures for various asset classes vary, and in the case of RWA tokens that have tokenized receivables, liquidation procedures for assets can be completed while maintaining decentralization through the following procedures:

1. RWA token open market listing

   If the borrower does not transfer the loan principal to the changed RWA token holders (investors who purchased from the NFT open market or secured by the landing protocol) by the maturity date recorded in the RWA tokens, the RWA tokens are automatically listed in the NFT NPL market.

2. Purchase of RWA tokens

   The bond buyer purchases RWA tokens listed on the open market. At this time, the bond purchaser can purchase RWA tokens at a discounted price based on the pre-contracted content.

3. Transfer of RWA token disposal amount

   When the bond purchaser sends the purchase amount of RWA tokens to the moneypool contract, the loan for the RWA tokens is terminated at the same time as the loan repayment to the changed RWA token holders.

4. Collection

   The bond purchaser proceeds with the collection process by presenting the RWA token to the original real asset owner. The real asset owner must transfer the original loan receivables to the bond purchaser or pay the corresponding fiat. This can happen either off-chain or on-chain.