# Glossary of Terms (Loan)

**APR:** annualized version of Loan Rate calculated as “365 / Duration \* Loan Rate”. For example: 10% Loan Rate on a 100 day loan would be 36.5% APR

**Auto Repayment:** An opt-in feature (Borrower must opt in at time of listing) that allows Borrowers to automatically repay a loan, *as long as the Borrower's wallet (same wallet as was used for the loan) has a sufficient balance* *for the repayment.* We recommend that users opt in for Auto Repayment as a safety net should a user encounter technical or other issues when attempting a manual repayment.

**Borrower:** A user who borrows funds / tokens using an NFT as collateral

**Collateral:** The NFT that the Borrower includes with a listing. Once a loan is funded, the collateral is moved to a smart contract (owned by neither Borrower or Lender). If the Borrower repays the loan, they receive the collateral back. If the Borrower does not repay, the Lender receives the collateral.

**Default:** If a Borrower does not repay a loan on time, the loan is deemed to be in default (the Borrower has defaulted). 

**Duration:** Length of the loan and the number of days that the Borrower has to repay the principal (original loan amount) + interest before their collateral is transferred to the Lender. If the Borrower has opted in for auto repayment and has a sufficient balance, our smart contract will repay the loan on the Borrower’s behalf after loan maturity.

**Lender:** A user who lends funds / tokens with an NFT as downside protection (collateral)

**Loan Amount:** Amount that a Lender transfers in order to fund a loan. The Loan amount is automatically transferred to the Borrower (after \[fees]).

**Loan Rate:** The rate used to calculate the interest a Lender would generate if a loan is repaid

**Loan to Value (LTV):** A metric that Borrowers can use to size loans and Lenders can use to assess loans. The metric is calculated as Loan Amount / Value (per 3rd party platforms) of Collateral. Read more [here](https://docs.flowty.io/blog/new-feature-momentranks-loan-to-value-ltv-added-to-flowty). 

**Properties:** An overview of the NFT’s properties

**Total Interest:** The total interest on the loan (calculated as Loan Rate X Loan Amount)


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