Contract: 0xdefac16715671b7b6aeefe012125f1e19ee4b7d7

Frequently Asked Questions

What is Defactor?

Defactor is an integration layer and suite of tools for traditional businesses to leverage Defi using the systems and processes which they already have in place. The platform enables asset originators to digitise their data in a way that they can easily plug into the finance which is available through existing and emerging defi lending protocols.

Is insurance available?

Defactor will be working with established insurance providers to provide insurance to assets on the platform where possible. A number of the asset originators will be providing their own insurance policies, again with reputable insurers, as a safety net for investors. Where insurance is not available, defactor will work with third party collection agencies and debt purchasers to reclaim investor funds.

Why are we called Defactor?

The name Defactor represents two parts: the ‘De’ stands for decentralised and ‘Factor’ describes a form of financing called factoring. Together they form ‘Defactor’ a bridge between decentralised and traditional finance.

What are the factors that affect the risk assessment score?

Different asset classes will have different risk factors so the risk model will change depending on the asset class. Using receivables financing as an example, Defactor will inspect the debtor credit rating, the country / industry risks, the availability of trade credit insurance and trading history. If trading history does not exist this will also affect the risk assessment score and can affect factors such as available funding and repayment terms.

Does Defactor require KYC/AML?

Traditional KYC and AML checks are required for a RWAO to access the platform and once verified this verification will be available to the network as a zero-knowledge proof that a given user has passed these checks.

What is the difference between Defactor and Centrifuge?

Centrifuge provides access for Defi investors to fund real world assets. (Supply) Defactor is the ramp for real world assets to be used as collateral for Defi Lending (Demand).

How safe are the assets on Defactor?

Defactor will conduct a thorough due diligence on the asset originators and deals flowing through the platform. Where possible, and keeping in mind privacy and security issues, we will make available supporting documentation for all deals flowing through the platform. Risk assessments will take place on a regular basis of not only customers requesting financing but also of the deals themselves and in certain cases insurance or collateral will be provided to balance counterparty risk.

What types of assets can you place on the platform?

Defactor will phase in different asset classes onto its platform. For the first phase, we will leverage our partnerships with Consol Freight and Accelerated Payments to finance invoices. During the second phase we are looking to bring real estate, NFTs and luxury goods onto the platform and are already working with partners in these areas. During our scaling phase we will be bringing real world loans on to the platform through our partners Lendwise and iHuddle.