# BNPL

Users can obtain NFTs that they cannot purchase directly through a "buy now, pay later" mechanism.

1. Users who want to leverage their purchases of NFTs can apply for a loan from the pool and use the borrowed USDT to buy the NFT.
2. The cost of purchasing the NFT includes the user's down payment and the loan amount.
3. Users who apply for a loan must repay it in equal installments with interest. The debt information is recorded on the NFT. Once the nearest repayment date has passed, the NFT enters a liquidation state. You can find more details about the interest rate model in the documentation.
4. When the NFT is liquidated, the liquidator will deposit a certain amount of USDT into the pool, take possession of the NFT, and clear the debt information on the NFT. Users who applied for the loan will receive nothing, which means they will lose their down payment and any repayments made.
5. The NFT records the debt information and can be traded on the secondary market. If users who applied for the loan predict that they cannot repay their debt by the next due date, they can sell the NFT on the secondary market to avoid further loss.
6. Users who apply for a loan can receive experience points and token incentives. The longer a user participates in the community and contributes to it, the higher their user level, and the lower their interest rate for loans.

The specific process is shown in the following flowchart:

<div><img src="https://s3-us-west-2.amazonaws.com/secure.notion-static.com/98d24eb9-bc4c-44c0-84f0-a38faaa4a471/Untitled.png" alt=""> <figure><img src="/files/Qt0TZsJ0PevOaTopWZjj" alt=""><figcaption></figcaption></figure></div>


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