Lifecycle

How an Otorofi loan actually works.

From the first wallet connection to the final atomic release of collateral, in six steps with no reconciliation and no surprises.

Wallet

Connect

Otorofi is non-custodial from the first click. You connect your Canton-compatible wallet and link your party identifier to the application, but the application never sees your private keys and never signs anything on your behalf.

Every subsequent action, including creating a borrow request, accepting an offer, locking collateral, funding principal, and repaying, opens a signing dialog in your wallet. The application prepares an intent; your wallet executes it. Your keys, your loan.

Request

Create or browse

A borrower opens the Workbench, creates a BorrowRequest, and chooses one of two paths: direct it to a specific lender's party ID, or post it to the open market via a BorrowRequestListing.

Lenders browsing the market see only the listings: principal, rate, term, and borrower party. Nothing else. The borrower's other requests, history, and counterparties remain private to them.

Offer

Negotiate

When a lender wants to bid on a listing, they create a LenderOffer, a contract visible only to the targeted borrower. The marketplace does not see it. Other lenders do not see it. Only the borrower it was made to.

The borrower can compare offers and accept one. Acceptance creates a PendingAgreement, the bilateral negotiation checkpoint where both parties commit independently before the loan is real.

Agreement

Commit

Both borrower and lender sign the PendingAgreement. When the second signature lands, the system atomically creates three new contracts: a LoanAgreementState (the lifecycle state machine), a LoanAgreementTerms record (immutable terms), and a CollateralEscrow (the multi-signatory custody contract).

All three are signed by both parties. Neither side can modify the deal unilaterally. There is no server arbitrating. The DAML contracts are the agreement.

Execution

Collateralize & fund

The borrower locks collateral at 1.30x the principal via the CollateralEscrow. This is the moment the deal becomes real. The borrower's wallet executes a transfer instruction, and the collateral enters multi-signatory custody.

Once locked, the lender funds the principal. Both events transition the LoanAgreementState to Active. The funding window is 72 hours; if the lender misses it, the borrower can cancel and reclaim the collateral.

Settlement

Repay & release

On the due date, the borrower repays principal plus interest, and the collateral releases atomically back to the borrower's wallet in the same transaction.

If the borrower defaults: a 72-hour grace period, then a 24-hour notice period, then the lender can seize by accepting the locked collateral transfer and taking ownership. No discretion required and no off-chain enforcement.

See the full technical brief

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