Risks

Read this before you borrow or deposit.

Eight things that can cost you money. Most of them come from the cards being held by someone else, and from the deadline being final.

Trainer Bank is not affiliated with or endorsed by Collector Crypt.

  1. 01Card custody

    Cards are physical items stored by Collector Crypt and represented by tokens Collector Crypt issues. Collector Crypt can freeze, move and burn the cards it issues. If Collector Crypt moves or burns a card held as collateral, the loan closes and the vault takes the loss.

  2. 02Missing the deadline

    If you do not repay before the deadline, the card is sold and you cannot get it back. The payback amount does not change, and late payment is not accepted.

  3. 03Sale below the loan

    A defaulted card is sold on a falling-price schedule over about a day. It can sell for less than the loan; the vault (depositors) takes that loss.

  4. 04Insured value is not a market price

    Collector Crypt sets insured values and changes them often. A loan uses the value at funding; later changes do not affect it.

  5. 05Smart-contract risk

    The contracts are not audited yet. Bugs could lose funds. After an independent audit they will be made immutable.

  6. 06Withdrawal delays

    Deposited USDC is lent out. When idle cash is short, withdrawals wait in a first-in, first-out queue until loans are repaid or cards are sold.

  7. 07Curator decisions

    A bot funds listings using public rules (card type, value and limits). It can be wrong; every decision is published on the Transparency page.

  8. 08Collector Crypt changes

    Collector Crypt can upgrade its marketplace. If it stops working with the protocol, a fallback lets anyone buy defaulted cards directly at the same falling price.