RWA FAQs

Owning a RWA

Purchasing RWA via onchain loan

Repayment & Liquidation

Owning a RWA

What if someone steals an NFT from me?

Leverage smart contracts to automate the buying process, making it fast, secure, and seamless for buyers. By eliminating intermediaries, transaction costs can be reduced by up to 10%.

Faster sales process. Why? How it works?

The RWA sale is much quicker than traditional sales. Instant ownership transfer occurs via smart contracts simultaneously with the payment for the NFT purchase. Smart contracts execute the conditions, ensure security, and streamline the entire NFT sale process.

What happens if my wallet is compromised or stolen, what security measures are taken?

The NFT itself is only a vehicle used to effect the transfer of property rights and it is sufficient proof of those property rights but it is not the only proof of those property rights because Propy maintains a register of the owners of those property rights. In the event of loss of the wallet or of access to the wallet, Propy has all the information necessary to identify the rightful owner and restore those property rights, and even, if necessary, issue a new NFT with the same properties as the lost one. For cases of compromised or stolen wallets or even stolen NFTs, see Q/A #1.

What Happens if I want to sell my Property as a traditional sale?

This is quite possible and easy. All an NFT owner has to do is to inform Propy of their intention to sell the property in a traditional sale and Propy will arrange for the property to either be conveyed to the buyer directly or to be conveyed first to the NFT owner who can subsequently do whatever they want with the property. However, in the case of a traditional sale, the NFT will be burned.

What is the process for transferring ownership with an NFT, and how does it differ from a traditional deed transfer?

Global Access: NFT sales are global and can be done with cryptocurrency. This ensures high liquidity, which translates to either a higher price for the seller or a faster sale, or a combination of the two.

Speed: NFT transfers are much faster, often completed in minutes, compared to weeks for traditional transfers.

Automation: Smart contracts automate the process, reducing intermediaries.

Transparency: Blockchain provides an immutable public record, enhancing transparency.

Security: Deeds are stored onchain encrypted, preventing fraud and hacks.

Purchasing RWA via onchain loan

What is Propy’s BTC-backed onchain loan for real-world assets (RWAs)?

Propy’s BTC/ETH backed onchain loan allows buyers to use both their crypto and the tokenized real estate (RWA NFTs) as collateral for instant loans.

How does the loan process work?

An NFT buyer on the Propy Marketplace can choose to finance the purchase with an instant loan secured by the RWA NFT and an equal amount of BTC (or ETH) provided by the buyer as collateral. If the loan is successfully paid off, both the NFT and the BTC (or ETH) will be returned to the buyer. However, upon loan default, the BTC (or ETH) collateral may be liquidated in order to pay off the lender, while any excess BTC or ETH and the NFT will be transferred to the buyer. If the liquidation proceeds of the BTC (or ETH) are less than the outstanding loan balance, the NFT will also be liquidated. Any excess proceeds from the liquidation of the NFT, minus any expenses, will be returned to the buyer. Notice that the buyer obtains usage rights to the property as soon as the NFT seller gets paid right after the loan is issued.

Why would I use this loan instead of a traditional mortgage?

The Propy Marketplace loan option allows buyers to not liquidate their crypto holdings which will be used as collateral. Onchain loans offer faster approval, with smart contracts executing in minutes instead of weeks of bank processing. They provide global accessibility, allowing borrowers to secure funds without local banks or credit checks. Additionally, they offer flexible repayment terms, making them a faster, more inclusive, and adaptable alternative to traditional mortgages.

How is the loan amount determined?

To participate in the RWA Sale, all buyers must deposit 280,000 USDC in ETH/BTC equivalent. Once the sale concludes, the final loan amount will be equal to the winning offer. If the final offer is 275,000 USDC, the excess 5,000 USDC (in BTC/ETH equivalent) will be refunded to the buyer’s wallet. The remaining amount will be equal to the final loan amount, which will be formalized in a loan agreement. If you deposit BTC or ETH but do not place the highest offer and do not win the RWA sale, the full amount of BTC or ETH of your deposit will be refunded to your wallet.

How is the collateral held? Is it safe and secure?

Both the NFT and your pledged BTC/ETH collateral will be held safely and secure inside an escrow smart contract during the RWA Sale and afterwards until the loan payoff.

Repayment & Liquidation

How do I repay the loan?

You will have to make monthly payments in your choice of USDC, BTC, or other approved crypto and stablecoins. You also have the option to pay the loan out from the collateral itself.

Can I repay the loan early?

If you decide to make a non-scheduled payment prior to a scheduled payment and prior to the Due Date, there shall be no prepayment penalty. If the non-scheduled payment is partial (not enough to fully repay the loan), the Payment Schedule shall be updated and shall be provided to you on a timely basis.

What happens if I can’t make a payment?

A grace period of 15 days is provided before it is considered a late payment.

What is the type of the loan, interest only or repayment?

Monthly annuity (a constant monthly amount which includes interest & principle, compounded monthly) payments.

Will I have control and ownership over my NFT if I get a loan?

When loan financing is chosen, the buyer obtains usage rights to the property immediately after the seller gets paid from the loan amount. The NFT is pledged as security (collateral) for the loan and is kept inside the escrow smart contract wallet. The buyer cannot sell or transfer the NFT for the duration of the loan or until the loan is repaid. After the loan is repaid, the NFT is transferred to the buyer’s wallet and the buyer acquires unencumbered rights to the NFT and to the property, ownership rights to which are represented by the NFT.