Quote from: vishesh2009 on July 15, 2018, 03:53:57 PM

Quote from: akjain on July 15, 2018, 02:36:25 AM

Quote from: vishesh2009 on July 14, 2018, 08:42:36 AM

Quote from: 123vjain on July 13, 2018, 02:04:47 PM

Who will guarantee the repaymnet of debt?

I guess thats why borrower has to keep collateral in cryptos.

But cryptos are very volatile. If i kept one BTC (worth 19k USD) as collateral in December 2017, and now the price has dropped to 6200 USD. So, will there be a margin that if value drops below that margin, you have to deposit additional collateral? How is everything going to work?

Well thats an interesting question. There must be some provision for that. I guess someone from DEPO only will answer that in a better way.

If the market price of the collateral drops drastically the Lender will be able to ask for an additional collateral. Also there will be a function implemented called "Market Volatility Control" whose purpose will be to regulate these kind of unexpected rapid drops so that the risk for both Lenders and Borrowers is minimalized.
Apart from this, not only cryptocurrencies can be used as a guarantee for loan. All types of assets which are becoming digitalized such as shares and bonds, will be accepted by the Lenders.