❓FAQs

What is the RWA Marketplace?

The RWA Marketplace provides a simple and secure way for investors to access and trade tokenized real-world assets without the need for intermediaries or extensive paperwork. With a focus on accessibility, transparency, and safety, the RWA Marketplace aims to democratize finance and make investing in RWAs more accessible to a wider range of investors.

What is RWA?

Real World Assets (“RWAs”) are assets that exist off-chain, but are tokenized and brought on-chain to be used as a source of yield within DeFi.

What are tokenized real-world assets?

Tokenized real-world assets are traditional assets, such as real estate, invoices, and loans. They are blockchain-based digital NFTs that represent physical and traditional financial assets.

How does the RWA Marketplace differ from other NFT marketplaces?

The RWA Marketplace focuses specifically on the tokenization and trading of real-world assets, whereas other NFT marketplaces may also include digital art and other unique digital assets.

Do I need to complete KYC to use the RWA Marketplace?

No, the RWA Marketplace does not require users to complete KYC (Know Your Customer) procedures. However, users are responsible for complying with any relevant regulations in their jurisdiction.

What cryptocurrencies can I use to purchase NFTs on the RWA Marketplace?

To purchase an asset, you can simply checkout using stable coins (USDC) or fiat (coming soon).

How do I raise a new tokenized asset on the RWA Marketplace?

To create a new NFT on the RWA Marketplace, you will need to provide the necessary information about the real-world asset, such as its unique identifier, ownership structure, and other relevant attributes. Once the NFT is created, it can be managed and traded on the platform. Only Asset originators can create a new NFT on the marketplace. To become an asset originator contact the Polytrade team.

Can I trade NFT directly with other users on the RWA Marketplace?

The RWA Marketplace allows for the relisting of NFTs on the platform, but only up until the due date of the NFT.

What is the benefit of using the RWA Marketplace to trade tokenized real-world assets?

The RWA Marketplace offers a decentralized, secure, and transparent platform for the trading of tokenized real-world assets. This allows for increased liquidity, reduced transaction costs, and more efficient and flexible management of assets compared to traditional markets.

What happens if I lose access to my NFTs on the RWA Marketplace?

If you lose access to your NFTs on the RWA Marketplace, you may not be able to recover them. It is important to keep your private keys and other login information secure and backed up to prevent loss or theft.

Is there a limit to the number of NFTs I can trade on the RWA Marketplace?

No, there is no specific limit to the number of NFTs that can be traded on the RWA Marketplace. However, users should be aware of any relevant regulations and restrictions in their jurisdiction.

What happens if a borrower defaults on their loan in the RWA Marketplace?

All asset originators are required to park a first loss pool, which provides an additional layer of protection for Asset buyers by ensuring their funds are safe in the event of default.

How are the values determined for Assets in the RWA Marketplace?

In the RWA Marketplace, Values are determined by the asset originators, who are the parties that provide the real-world assets as collateral for the marketplace. These asset originators set the interest rates based on various factors such as the creditworthiness of the borrower, the type and value of the collateral, and prevailing market conditions. The interest rates are then offered to potential Asset Buyers on the platform, who can choose to lend at the offered rates or negotiate for better terms with the asset originators. The RWA Marketplace provides a transparent and competitive platform for both asset originators and Asset Buyers to interact and set interest rates based on market demand and supply.

Can I create a counteroffer on the RWA Marketplace?

Yes, you can create a counteroffer on the RWA Marketplace. If you find a NFT that you're interested in buying but don't agree with the current price, you can create a counteroffer to the Asset originator. The Asset originator will receive a notification of your offer and can choose to accept, reject, or make a counteroffer of their own.

This feature adds flexibility and negotiation to the buying and selling process, allowing buyers and sellers to come to a mutually agreeable price. It also helps to ensure that NFTs are priced fairly and reflect their true value in the market.

Note: This feature will not be activated for the first phase of the marketplace, helping prevent confusion and making it easier for users to adopt and use the platform.

What happens if there is a dispute between the two parties in the Real world?

In the RWA Marketplace, the deal is currently between an Asset originator and an Asset Buyer. In the event of a dispute between the two parties in the real world, the asset remains on-chain and is not affected. In such a case, Polytrade has insurance partners and a first-loss pool. The asset holder will still receive payment on the due date, and Polytrade will claim the funds for the insurer.

How does the RWA Marketplace ensure the authenticity of the real-world assets being used as collateral?

The RWA Marketplace has a strict due diligence process to ensure the authenticity of the real-world assets being used as collateral. This includes a thorough verification process of the asset and its ownership, as well as its value and other relevant details. The asset originators who list their assets on the RWA Marketplace are also required to provide documentation and proof of ownership and value. In addition, the RWA Marketplace uses external data providers and third-party validators to confirm the authenticity and accuracy of the information provided. The platform also employs smart contract technology to ensure that the assets being used as collateral are secure and cannot be tampered with. All of these measures work together to provide a high level of assurance and trust in the authenticity of the real-world assets used as collateral on the RWA Marketplace.

Are there any fees associated with using the RWA Marketplace?

Yes, there are fees associated with using the RWA Marketplace. These fees are known as the platform fee, which is charged by the marketplace on every transaction made on the platform. However, for the initial launch of the RWA Marketplace, the platform fee will be set to 0 to encourage early adoption and usage of the platform. The platform fee may be adjusted in the future to ensure the sustainability of the platform.

What is the process of fractionalizing assets on the RWA Marketplace?

The process of fractionalizing assets on the RWA Marketplace involves creating an NFT that represents the underlying asset and then dividing that NFT into multiple smaller NFTs, which represent fractions of the original asset. These smaller NFTs can then be traded on the marketplace, allowing investors to own a portion of the asset. The fractionalization process is managed by the platform and requires approval from the asset owner. Once the fractionalization is complete, investors can list and sell their shares of the NFT representing a fraction of that asset. This feature will not be activated for the first phase of the marketplace, helping prevent confusion and making it easier for users to adopt and use the platform. For Phase 1 Assets have been fractionalized and added to the marketplace.