> For the complete documentation index, see [llms.txt](https://docs.maple.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.maple.finance/technical-resources/strategies/open-term-loans/open-term-loan.md). # Open Term Loan `MapleLoan` is the open-term loan contract between a Borrower and an Open Term Loan Manager, which acts as the lender. Full interface: [OpenTermLoan](/technical-resources/interfaces/open-term-loan.md). ## Accepting Loan Terms A newly deployed loan cannot be funded until the Borrower calls `acceptLoanTerms()`. The call sets `loanTermsAccepted` to true and emits `LoanTermsAccepted`. Only the Borrower, or an address registered as a `BORROWER_ACTIONS` instance in Globals, can make it, and only once. `fund()` reverts with `ML:F:TERMS_NOT_ACCEPTED` until then. The v2.0.2 migrator sets `loanTermsAccepted` to true on loans deployed before this step existed. ## Accounting ### Asset Definition Loans manage one asset: `fundsAsset`. #### `fundsAsset` This represents the ERC-20 token that is used to facilitate the funding, drawing down, and payments during a loan lifecycle. Typically this would be a stablecoin such as USDC, DAI, or USDT. ### Payments Borrowers have the flexibility to make payments, including partial principal repayments, against their loans at any given time. All fees, including service fees, along with interest, are pro-rated and calculated based on the exact time of payment or other significant actions such as loan funding or refinancing. Payments due are comprised of `principalCalled + interest + lateInterest + delegateServiceFee + platformServiceFee` ### Interest Interest is prorated and calculated from the relevant `startDate` till the current `block.timestamp` $$startDate = \max(datePaid, dateFunded)$$ $$interval = block.timestamp - startDate$$ $$interest = principal \* interestRate \* \frac{interval}{365\*86400}$$ ### Late Interest Late payments are also prorated and based on the `lateInterestPremiumRate` and `lateFeeRate` $$lateInterval = block.timestamp - paymentDueDate$$ $$lateInterest = principal \* lateInterestPremiumRate \* \frac{lateInterval}{365\*86400} + (principal \* lateFeeRate)$$ ### Delegate Service Fee Delegate Service Fee is prorated and calculated from the relevant `startDate` till the current `block.timestamp` $$startDate = \max(datePaid, dateFunded)$$ $$interval = block.timestamp - startDate$$ $$delegateServiceFee = principal \* delegateServiceFeeRate \* \frac{interval}{365\*86400}$$ ### Platform Service Fee Platform Service Fee is prorated and calculated from the relevant `startDate` till the current `block.timestamp` $$startDate = \max(datePaid, dateFunded)$$ $$interval = block.timestamp - startDate$$ $$platformServiceFee = principal \* platformServiceFeeRate \* \frac{interval}{365\*86400}$$ ## Due Dates There are two virtual variables `paymentDueDate()` and `defaultDate()` that define the relevant due dates depending on if a payment is late, the loan is called, the loan is impaired, or any combination thereof. To compose these virtual variables, an internal helper function called `_dueDates()` is used. ### `_dueDates()` Returns the due dates for `callDueDate`, `impairedDueDate` and `normalDueDate` #### `callDueDate` $$ \ \text{callDueDate} = \begin{cases} \text{dateCalled + noticePeriod} & \text{if } \text{dateCalled} > 0 \ 0 & \text{if } \text{dateCalled} = 0 \end{cases} \ $$ #### `impairedDueDate` $$ \ \text{impairedDueDate} = \begin{cases} \text{dateImpaired} & \text{if } \text{dateImpaired} > 0 \ 0 & \text{if } \text{dateImpaired} = 0 \end{cases} \ $$ #### `normalDueDate` $$paidOrFundedDate = \max(datePaid, dateFunded)$$ $$ \ \text{normalDueDate} = \begin{cases} \text{paidOrFundedDate + paymentInterval} & \text{if } \text{paidOrFundedDate} > 0 \ 0 & \text{if } \text{paidOrFundedDate} = 0 \end{cases} \ $$ ### `paymentDueDate()` $$paymentDueDate = \min\_{\neq 0}(callDueDate, impairedDueDate, normalDueDate)$$ $$\min\_{\neq 0}$$ takes the earliest date and ignores any date that is zero (unset). ### `_defaultDates()` Returns the due dates for `callDefaultDate`, `impairedDefaultDate` and `normalDefaultDate` #### `callDefaultDate` $$callDefaultDate = callDueDate$$ #### `impairedDefaultDate` $$ \ \text{impairedDefaultDate} = \begin{cases} \text{impairedDueDate + gracePeriod} & \text{if } \text{impairedDueDate} > 0 \ 0 & \text{if } \text{impairedDueDate} = 0 \end{cases} \ $$ #### `normalDefaultDate` $$ \ \text{normalDefaultDate} = \begin{cases} \text{normalDueDate + gracePeriod} & \text{if } \text{normalDueDate} > 0 \ 0 & \text{if } \text{normalDueDate} = 0 \end{cases} \ $$ ### `defaultDate()` $$defaultDate = \min\_{\neq 0}(callDefaultDate, impairedDefaultDate, normalDefaultDate)$$ ## Loan Calls The lender exclusively has the ability to commence a Loan Call, specifying the principal amount that must not exceed the current principal balance. In the event of partial Loan Calls, the loan continues with a reduced balance but the same terms. Conversely, a complete Loan Call leads to the loan maturing once the borrower repays. Upon a Loan Call by the lender, the borrower is obligated to settle the demanded amount within the Notice Period or risk the loan defaulting. The lender can also withdraw a Loan Call, which reverts the payment schedule back to its original state prior to the Loan Call. If a Loan Call is made on a late loan, the lender can default the loan at the termination of either the Notice Period or the Grace Period, depending on which comes first. It's worth noting that refinancing is considered a valid resolution to Loan Calls, with such calls being settled once the parties agree to new terms. ## Fees Open-Term Loans have `delegateServiceFees` and `platformServiceFees` which are prorated and calculated on each payment. ## Closing Loan If a borrower wants to close a loan, they can do so by calling `makePayment` with `principalToReturn` equal to the outstanding principal. Note: `makePayment` is permissionless. Any address can pay on behalf of the borrower by transferring funds via `transferFrom` to the lender. Typically, the borrower calls it directly. ## Initialization Parameters * `borrower` - The address of the borrower. * `lender` - The address of the lender. * `fundsAsset` - The address of asset that the loan is denominated in. * `principalRequested` - The principal the lender will fund. * `gracePeriod` - The amount of time that the lender needs to wait before triggering a default on a late loan. * `noticePeriod` - The time the Borrower has to satisfy a loan call. * `paymentInterval` - The amount of seconds between each loan payment. * `interestRate` - The annualized interest rate. * `lateFeeRate` - A fee rate applied on principal amount on late payments. * `lateInterestPremiumRate` - A premium added on top of the interest rate for late payments. * `delegateServiceFeeRate` - A rate of funds assets that is added on every payment destined to the pool delegate. The `platformServiceFeeRate` is not a parameter. The initializer reads it from Globals for the lender's Pool Manager, and `acceptNewTerms` refreshes it on every refinance. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.maple.finance/technical-resources/strategies/open-term-loans/open-term-loan.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. 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