Transferring NFT with Loans

To provide convenience and greater flexibility for holders, as well as to minimize losses when unable to repay debts, the NFTs in this project can carry debt information and be sold in the secondary market.

Once an NFT is purchased through a buy-now-pay-later scheme or used as collateral to secure a loan, the holder has the option to sell it in the secondary market without waiting for the loan to be fully repaid.

When an NFT carrying debt information is successfully sold in the secondary market, the original holder receives a portion of the proceeds as compensation, which can be used for other investments or consumption needs. The new holder is responsible for continuing to repay the debt and ensuring timely loan repayment. Failure to do so will result in liquidation of the NFT, causing the new holder to lose everything.

If the new holder is unable to continue repaying the NFT loan, they can further sell it in the secondary market to receive some compensation on their investment.

This mechanism allows holders to access liquidity while participating in market transactions, thus enabling better management of their financial needs and investment goals.