SOFIN (Social Financial Network) — P2P-lending online service based on blockchain. This marketplace platform, that brings creditors and borrowers together:
- Creditor — individuals, banks, microfinance organizations and funds
- Borrower — individuals, entrepreneurs, and organizations
Loans are issued in a fiat currency of the borrower country of residence. This allows the currency to be exchanged through the SOFIN token among creditors and borrowers from different countries.
On our website you can see the demo version of the platform.
SOFIN mission – to remove barriers and borders to grant the less developed countries access to financial recourses. We will address the daily needs of average individuals and entrepreneurs, opening up decentralized access to finances on the terms convenient to both parties, and not to a financial bank entity or any other intermediary.
Each potential borrower must undergo a verification process based on the methodology we have developed and tested—proved to be successful in our online-IFI. Each verified borrower will be awarded a credit rating, which will aide the prospective creditor in the investing decision. In every country, our local representative will correlate the local merits of credit scoring (ergo, analogous
NBCH, FSI, RPF, FSSP, etc.) for the most accurate risk assessment. Our level of pre-judicial settlement is 17%. This is a very high rate for microcredit market. Legal purity and transparency of each transaction. The loan is given in the fiat rate in currency of the borrower, according to the law. Therefore, creditor has a clear and legitimate reason to repay his loan.
Verification takes place within the following parameters:
- Passport validity of citizenship
- Verifying borrower in the executive productions data bank
- Checking borrower for bankruptcy
- Convictions and trials currently in progress
- Database of terrorists and extremists
- Verifying the credit score of the borrower in the credit ratings bureau–only banks and microfinance organizations have access to credit ratings under the law, our access will be provided through the IFI’s partner
- IP address of the borrower
- Social media networks—there are more than 10 factors per network
- Employer organization for existence at TIN\PSRN\Name
- Location of the borrower on cellular data
- Bill payment history, such bills like telephone, utility, etc.
- Verifying contact information of the borrower
We will integrate the local verification services in every country (read more on how to connect new countries in the Road Map).
Using Tokens in the System
The tokens within the system will be used as follows. The creditor (or the pool of creditors within a single loan) and the borrower will the same fiat rate currency. The creditor will be able to exchange one fiat currency to another using our tokens in the system. The entire loan amount is distributed in fiat. If a part of the loan is in cryptocurrency, the system automatically converts the loan to fiat currency of the borrower. The borrower pays a percentage to the system before receiving credit (up to 5% of the amount in SOFIN tokens that will be purchased automatically from the exchanges). This is the main source of income of the service: these funds are used to pay the bonuses and cashback in SOFIN — 1.5% to the borrower and 1.5% to the creditor. When the borrower repays the loan the creditor will have a choice to get the entire income in fiat or take a part of it with tokens. Also a part of the loan amount (1.5% to the creditor and 1.5% to the borrower) will return with tokens as cashback. A part of a loan (up to 20%) can be issued with tokens that the system will automatically buy and transfer to the fiat currency for the borrower. The integration of other cryptocurrencies with the possibility of issuing loans up to 100% will be pursued. Tokens can be used as an intermediate link in exchange of one fiat currency to another to issue loans in the currency of the borrower. Token holders will receive some advantages over ordinary users of the system (external differences in the service interface, more profitable bonus terms, etc.).
Why Do We Need Blockchain?
- Transparency of all transactions performed on the platform – all reporting systems can be verified
- Automated processes through smart contracts
- Convenience in working with cryptocurrencies on Ethereum ERC 20
- Integration with other projects on blockchain (such as registers, credit scoring, statistical services)
- Reliability and fault proof
Benefits of SOFIN Tokens
- A part of the loan (up to 20%) can be issued with the SOFIN tokens that the system will automatically buy at a profitable rate and transfer to fiat for the borrower. The integration of other cryptocurrencies with the possibility of issuing loans up to 100% will be pursued.
- Tokens can be used as a mediator link in exchange of one fiat currency to another to issue loans in the currency of the borrower.
- Large token holders will be identified as trusted members of the system. They will have more profitable loan terms, if necessary. Such holders will receive a bonus — a two-fold fee of the system to make loans for their tokens. The system will provide a guarantee for such borrowers in case of a default, that will cover the loan instantaneously by taking it as a loss out of the company funds. However, in the future the delay of funds will be covered via purchase of mortgage tokens from the borrower. These borrowers will thus have the highest ranking in the system and, as a result, will be able to attract investments on the most profitable terms, as the investor will ask for a minimum low rate of risk at almost zero
- Token holders will receive some advantages over the common users of the system (ergo, external differences in the service interface, more profitable bonus terms, etc.)
- The P2P system will receive the fee, up to 5%, in the SOFIN tokens, which will be automatically purchased from the exchange on each loan. This is the main source of income of the service: these funds are used to pay the bonuses and cashback in SOFIN — 1.5% to the borrower and 1.5% to the creditor. When the borrower repays the loan the creditor will have a choice to get the entire income in fiat or take a part of it with tokens.
Electronic Loan Agreement
A loan agreement signed by an equivalent handwritten signature has legal force in the RF, USA, EU and other countries and regions of the world. The EHS is generated by the platform by sending the digital code to the mobile phone of the contract party. All the relationships of the sides on the platform are through the electronic workflow through the preparation of the platform and the signing the relevant documents by the parties:
- Loan agreement
- Extension of a loan
- Issuance and withdrawal of bail
- A surety agreement
- Assignment of a claim under an obligation arising from a contract