Term Loan Origination Tool

WHAT IT DOES

This tool provides on-chain origination of term loans, enabling you to create, fund, and approve term loans with collateral and interest rates. It reads your connected wallet address, loan contract address, borrower address, loan amount, interest rate, loan duration, collateral token address, collateral amount, current block timestamp, and loan status. You can then sign and send transactions to originate new term loans with specified parameters, fund loans with the principal amount, approve loans after verification, and record loan metadata on-chain. All loan parameters are displayed in a clear review panel before you sign, so you know exactly what you are originating. The tool also logs transaction hashes, confirmation status, and gas costs, providing a complete audit trail of all loan activities.

HOW TO USE

Connect your wallet using the built-in wallet bridge, choose the network that matches your loan contract, and paste the loan contract address. Enter the borrower address, loan amount in raw units, interest rate in basis points (e.g., 500 for 5%), loan duration in seconds, collateral token address (use 0x0 for native currency), collateral amount in raw units, and token decimals for display purposes. The review panel shows all inputs and the current block timestamp before you sign. Use the numbered action buttons: originate loan to create a new term loan with your specified parameters (the collateral is sent as value); fund loan to fund an existing loan with the principal amount; or approve loan to approve a loan after verification. You can also check status to view current loan state, amount, interest rate, funded amount, and maturity date. Each transaction is signed sequentially, and the tool displays transaction details and confirmation status.

THE REAL MECHANISM

This tool uses ethers.js v5.7.2 to build and send transactions through the wallet's signer. It does not rely on any hardcoded contract addresses – you paste the loan contract you are using, so you are in full control. When you originate a loan, the tool constructs a contract call to the originateLoan function, which takes the borrower address, loan amount, interest rate, duration, collateral token address, and collateral amount. The contract transfers the collateral from your wallet, creates a new loan with a unique ID, and sets the loan status to pending. When you fund the loan, the tool calls fundLoan, which transfers the principal amount to the borrower. When you approve the loan, the tool calls approveLoan, which marks the loan as approved and records the maturity date. The tool reads loan state via getLoan, which returns borrower, amount, interest rate, duration, collateral amount, funded amount, maturity, and approval status. All transactions are sequential to prevent nonce conflicts, and gas costs are calculated using effectiveGasPrice for accurate post-EIP-1559 reporting.

WHAT IT CANNOT SEE

This tool cannot verify off-chain borrower creditworthiness, assess collateral value, detect fraud, or ensure that the loan contract handles origination correctly. It cannot detect if the borrower is creditworthy or if the collateral is properly valued. The tool also cannot verify that the loan contract correctly handles edge cases like loan defaults, collateral liquidation, or repayment. It cannot simulate the outcome of a transaction before you sign it, nor can it guarantee that the loan will be originated correctly if the contract is not properly implemented.

PLEASE NOTE

This tool works only on EVM-compatible chains supported by your wallet and provider. Always double-check the contract addresses and parameters before signing. Use testnet first. The tool is a transaction-signing interface and loan origination management tool, not a credit assessment or fraud detection system.