Mey Network
  • Mey Network
    • Introduction
      • Background and Context
      • Vision and Mission
    • Introduction to Meey Group
      • Formation and Development Process
      • Achievements
      • Partnerships
  • THE PROBLEM
    • Barriers to Real Estate Investment
    • Inefficiencies in Traditional Real Estate Transactions
    • Limitations of Current Solutions
  • Mey Network Ecosystem
    • Overview of the Mey Network Ecosystem
      • Key Components and Features
        • MeyFi Platform
        • Meychain
      • Strategic Objectives
    • MeyFi Platform
      • Mey Staking
      • P2P Lending
        • Tokenization of Real Estate Assets
        • Lending Process and Collateralization
        • Risk Management and Yield Opportunities
      • Property Token Offering (PTO)
        • Fractional Ownership Model
        • Token Sale Process and Investor Protections
      • Marketplace
        • Trading Mechanics
        • Liquidity and Market Dynamics
        • Regulatory Compliance and Security
    • Meychain: The Layer 1 Blockchain
      • Integration with RWAs
      • Developer Ecosystem
  • TOKENOMICS
    • MEY Token Utility and Use Cases
    • Token Supply and Distribution
  • USE CASES & APPLICATIONS
    • Real Estate Investors
    • End-Users and Consumers
  • TECHNOLOGY & SECURITY
    • Blockchain Technology
    • Smart Contracts
    • Data Privacy and Security
  • ROADMAP & DEVELOPMENT PLAN
    • Phase 1: Launch of MeyFi Platform
    • Phase 2: Development of Meychain
    • Phase 3: Expansion and Scaling
  • LEGAL & REGULATORY CONSIDERATIONS
    • Compliance and Licensing
    • Regulatory Environment
    • Risk Factors
  • TEAM & ADVISORS
    • Core Team
    • Advisors
  • Contact Us
    • Get in touch
    • Communities
Powered by GitBook
On this page
  1. Mey Network Ecosystem
  2. MeyFi Platform
  3. P2P Lending

Risk Management and Yield Opportunities

Risk management is a critical component of the P2P lending process in the Mey Network. The platform employs several mechanisms to mitigate risks for both borrowers and lenders:

  • Collateralization via NFTs

The use of real estate-backed NFTs as collateral provides a strong security layer for lenders. The value of the collateral is typically higher than the loan amount, ensuring that lenders are covered in case of default.

  • Custodial Oversight by Meey Finance

Meey Finance’s role as the custodial party ensures that the real estate collateral is securely managed throughout the loan term.

This oversight adds an additional layer of protection for lenders, as Meey Finance will take responsibility for liquidating the property if necessary.

  • Smart Contracts

The automation provided by smart contracts reduces the risk of human error and fraud, ensuring that all loan agreements are executed precisely as agreed.

This transparency and automation enhance trust between borrowers and lenders.

  • Loan-to-Value (LTV) Ratios

The platform enforces conservative Loan-to-Value ratios, which limit the amount a borrower can receive relative to the value of the collateral.

This further protects lenders by ensuring that the collateral remains sufficient to cover the loan even in the event of market fluctuations.

  • Market Liquidity

The tokenization of real estate into NFTs and the active marketplace for trading these NFTs provide liquidity options for lenders, allowing them to sell their loan positions if they need to exit before the loan term ends.

PreviousLending Process and CollateralizationNextProperty Token Offering (PTO)

Last updated 7 months ago

Page cover image