What are the conditions for financing individual projects?
In phase one, Small-medium size projects of national infrastructure importance backed by government security will be undertaken. Participation of governments and leading corporates will get preference. Individual projects will be evaluated based on case to case basis. Beneficiaries can post projects on TradeFinex platform and reach out to global financiers for funding and global suppliers for procurement.
Can anyone holding XDC become a financier on the platform? What will be the criteria for becoming a financier on the platform?
Yes, anyone holding XDC tokens can become a financier on the TradeFinex platform. TradeFinex will essentially become a joint label/white label platform that uses underlying liquidity in XDC market to lend globally. Investments are subject to risks; XinFin recommends carrying out due diligence before investing.
Can an investor finance a project partially along with a pool of investors?
Yes. An investor can finance a project along with several other financiers. Our underlying smart contracts will support this. As the value of the project to be financed goes up, this feature will be required by Financiers. Smart contracts have capability to configure payment milestones and even split them financier wise. Smart contracts will provide transparency and visibility on repayment to participating financiers
How do I do due diligence to ensure borrower is able to repay the loan?
We have a global platform for peer to peer trade and finance. We will be inviting leading project feasibility evaluators to be on the platform. The financiers may evaluate and shortlist one of them to carry out techno-commercial feasibility, if they need. This will help them take an informed decision on investing in a project based on the risk appetite. For larger projects, government security will be sought.