Takaful Reserve Fund to help unsecured lenders be protected in a default situation.
There may be many peer-to-peer lending platforms out there offering to match borrowers and lenders. However, there is still yet a platform that meets the demand that both borrowers and lenders are seeking for.
They are looking for a single platform that will be able to bring personal financing worldwide, has a fair global rate for borrowers, safety nets to protect lenders and a compensation fund.
iP2PGlobal aims at fulfilling that gap by providing a truly integrated single platform to fulfill the needs of both borrowers and lenders worldwide that has Anti-money Laundering and Know Your Customer Policy for both borrowers and lenders, credit scoring, global rates, e-financing agreements and debt collectibility and compensation fund.
IP2PGlobal will kickstart their platform by offering two financing products, which are unsecured personal financing and secured personal financing.
Both are based on Tawarruq sharia finance principles, which is used by most Islamic banks worldwide in providing personal financing. James Loy, iP2PGlobal Management Team’s CEO, said they understood some lenders are seeking for some protection in the event of default by borrowers.
This led them to introduce a Takaful Reserve Fund (TRF).
The aim of the TRF is to allow lenders an option to take some protection in cases of default in unsecured Tawarruq personal financing.
“The decision to invest is the lenders alone and they are solely responsible for the investment that they make through the platform. However to cushion some of the risks, iP2PGlobal will introduce a TRF where lenders will have the option to contribute to the TRF at the start of an unsecured Tawarruq financing,” James Loy said.
He elaborated that TRF will cover lenders for a net amount that can be reasonably recovered by an appointed Collection Agency, even after all actual recovery attempts by the agency have failed after a period of 90 days from the date of non-payment by a borrower.
Compensation from the TRF will depend on the availability of funds inside.
“To ensure we have sufficient funds inside the TRF from inception, IP2PGlobal will seed the TRF by pledging 15% of the ETH received from the TWQ crowdsale,” James Loy said.
Additionally, the TRF will serve another purpose, whereby it will be used to self-limit the amount of outstanding unsecured Tawarruq personal financing that can be funded through the platform at any given time.
This will be done via iP2PGlobal maintaining a capital adequacy ratio (CAR), similar to the one adopted by traditional banks.
Banks have to maintain a sufficient CAR to ensure they have sufficient capital (which is TRF in this instance) to repay its debts (amount of outstanding unsecured Tawarruq personal financing).
“iP2PGlobal will maintain the CAR similar to banks, which is 8%,” said James Loy.
TWQ Token Pre-ICO is ongoing
iP2PGlobal Personal Financing Platform is offering a total 155,000,000 TWQ tokens for subscription for its pre-ICO, starting from 19th February, 2018 (00:00 UTC) to 29th April, 2018 (23:59 UTC).
Different bonuses are offered at different stages of the pre-ICO, which is outlined in the whitepaper.
The TWQ (Tawarruq) is an ERC20 token that confer the right to the token holder to submit an application for a personal financing based on a Commodity Tawarruq Trading program, through the iP2PGlobal platform and have it listed in the platform for prospective lenders to view and choose to finance.
The TWQ Token is a pure utility token and does or will not provide any other rights and functions to its holders.
Meanwhile, the ICO crowdsale starts on 30th April, 2018 (00:00 UTC) and ends on 13th May, 2018 (23:59 UTC).
The price being offered for the tokens is 0.0002 ETH for 1 TWQ during pre-ICO and ICO crowdsales.
For even better perks, large purchase bonus for individual subscriptions above 50ETH will be entitled to a 10% additional TWQ tokens.
iP2PGlobal brings together best practices of traditional banks and the world of cryptocurrency into one peer-to-peer (P2P) financing platform. It connects borrowers and lenders from across the globe on a single platform in a trusted, fast and easy manner. This is powered by its newly introduced utility token, TWQ, which is based on Ethereum’s ERC-20 Smart Contract Platform. iP2PGlobal is the solution in Re-Shaping Personal Financing.