Insurance & Liquidation Events

BPEG'd has designed a proprietary insurance feature that is the first of its kind on the Bitcoin layer and provides added security to your borrowing/lending activity when utilising our platform. Users will be prompted at point of loan origination to purchase BIS (BPEG'd Insurance) with guidance on cost and coverage. Note, it is optional but can provide important coverage and protection against adverse or volatile market conditions.

BIS carries a 2.5% non-refundable fee which is automatically calculated on-chain by BPEGs BIS Smart Contract.

If your loan is liquidated you can repurchase your NFTs from the BPEGDAO after repaying any outstanding debt on the initial loan and a reasonable liquidation fee of 7.5%. The 7.5% liquidation fee is based on the user's outstanding debt which is principal but however discounted plus any accrued interest. Please note, the liquidation fee is subject to dynamic adjustment on a continual basis dependant on the needs of the protocol and current asset liquidity robustness of tiered Lockers**.

All users will have a 72 hour window to initiate a formal call-back on their insurance claim to recover their NFT's from the DAO. At which point, unclaimed NFT's will be sold at current best market prices and assets converted to STX,xBTC & USDb to maintain BPEG's lockers.