# 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.
---
# Agent Instructions: Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter:
```
GET https://arkslabs.gitbook.io/arks/how-arks-works/transferring-nft-with-loans.md?ask=
```
The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.