FintruX is an ICO project with the intention of creating a peer-to-peer lending marketplace where users within its platform can obtain loans up to 6 figures. They help make the lending process easier for borrowers and gives lenders more security and assurance.
Its FTX token is used to help lenders and borrowers conduct transactions with each other. This means that the system doesn’t risk lending the money, but 5% of the tokens are reserved for lenders who had borrowers default or fail to meet their loan contract terms.
How Large is the Lending Market?
Peer to Peer lending has grown about 81% within the past 2 years within the UK. This is due to the internet helping with the lending process, banks being unwilling to allow borrowers to lend money. Banks tend to charge high-interest rates which decreases the demand and interest of using their services.
Traditional banks give traditional loans, but they are virtually impossible to obtain. If you do gain an unsecured loan, the interest rate might make it hard to pay it off in time. P2P platforms allow investors to give borrowers unsecured loans and lend money in a secure network.
FintruX’s Financial Solution
FintruX uses credit enhancements to neutralize your credit risk if you’re lending money. If a default occurs, it will provide insurance to cover the loss. With this risk reduction, investors can have a peace of mind while borrowers can enjoy lower interest rates.
Here are the four levels of protection that FintruX offers its lenders:
- Over-Collateralization: This protects 1 out of 10 bad loans by holding 10% of each loan. This acts as a form of collateral protection and is the level of lending security its network provides.
- Third Party Guarantors: You can participate on the platform as a guarantor for their selected loans. You can choose the compensation packages, risks, and cover the losses in the event of a default.
- Cross Collateralization: The 10% that’s held back from every loan is placed in an insurance pool that covers each loan within that class. When used to match the obligations, this helps cover the average loan loss of each defaulted contract.
- FintruX Reserve: 5% of the tokens that are saved will be used as a last resort for default loans.
Token Sale Information
- Peer to Peer Loans: Due to its peer to peer loan network, borrowers can use FTX tokens and receive lower interest rates.
- Default Protection: FintruX has a 4 layer system which is used to protect lenders from experiencing losses.
- Simple Process: You don’t have to go through banks to conduct loans. FintruX allows you to log in its network and use FTX tokens which are faster than gaining a loan from a bank.
- Limited Accessibility: Major countries such as the US is unable to participate in FintruX’s coin sale.