Repayment

Repayment

The borrower must repay the loan before the Maturity Time to avoid default liquidation. Assuming the loan is denominated in USDC, the repayment flow proceeds as follows:

1. The borrower submits a USDC transfer transaction to the Lending Contract to repay both the principal and accrued interest.

2. Event Signers sign an attestation of the repayment event, which is triggered by the Lending Contract, and publish the signature on the Side Chain.

3. Anyone (including relayers) can use the Event Signers’ attestation signature to reveal the corresponding CET adaptor signature, and broadcast the CET on the Bitcoin network to release the collateral back to the borrower.