FAQ

General

What is AMP Finance?

A peer-to-peer lending protocol on the Midnight network. Lenders post offers with fixed terms, borrowers take them by posting collateral, and no wallet address is ever attached to either side. What is AMP Finance.

Is it like Aave or Compound?

No. There is no shared pool, no interest rate formula, no price feed and no liquidation. Each offer is one lender's money on that lender's terms, and a loan ends only in repayment or, after its term and grace window, seizure. How it differs from pool lending.

Can I try it without real money?

Yes. AMP Finance currently runs on Midnight Preview, a test network where every token is free and worth nothing. Getting test tokens.

Is it live on Midnight's main network?

Not yet. The current deployment is the testnet, for testing and development only. Testnet.

Can my funds be frozen?

No. Nothing in the protocol can pause, freeze or block a shield, an unshield, a repayment or a claim, and nobody can move anyone else's funds. What the contracts guarantee.

Does it cost anything to use?

Every transaction pays a network fee in DUST, which builds up from holding NIGHT. Lenders also pay a protocol fee out of their interest when a loan is repaid. Borrowers pay no protocol fee. Transaction fees and DUST.

Wallets and fees

Which wallets work?

1AM for everything, and Lace for connecting and viewing. Lace cannot yet build the proofs a transaction needs. Wallets and networks.

Why does a transaction take so long?

Each one is proved privately on the device, approved in the wallet, and then confirmed by the network. Expect on the order of half a minute to a minute, and longer the first time an action is used because a large file is downloaded once. What happens during a transaction.

What is DUST and where do I get it?

DUST pays network fees. It cannot be bought or sent; it accumulates on its own from holding NIGHT. Hold some NIGHT and wait.

Shielding

Why do I have to shield tokens first?

Because public tokens name the wallet that spends them, and a loan built on them would expose both sides. AMP Finance only holds shielded tokens. Why everything is shielded.

What backs a shielded token?

Exactly one public token of the same kind, held in reserve by the shielding contract until someone unshields. There is no fee either way. Shielding a token.

Can I unshield any time?

Yes, any amount up to the shielded balance, in one transaction, with nothing to wait for. The address that receives the public tokens is recorded. Unshielding a token.

Lending

How much can I earn?

The interest set in the offer, less the protocol fee, plus a late fee if the borrower repays during the grace window. Nothing if the borrower never repays; the collateral comes instead. What a lender earns.

Is my loan safe because it is collateralised?

No. Collateral makes a loan backed, not safe. The protocol never checks prices and never sells collateral early, so a borrower whose collateral has fallen in value can simply not repay, leaving the lender with the collateral at whatever it is now worth. Risks for lenders.

Can I cancel an offer?

Yes, at any time. Whatever has not been borrowed comes back. Loans already drawn from it continue unaffected. Managing an offer.

Do I get paid automatically when a borrower repays?

No. Repayments are held for the lender, who collects each one with a transaction. There is no deadline on collecting.

What is the offer token?

The key to the offer. It is needed to cancel, to collect each repayment and to seize on default. One token covers every loan from that offer. Keep it in the wallet and never send it. Position tokens.

Borrowing

How much can I borrow?

Up to what an offer has available, as long as the wallet holds the collateral that amount requires. Draws below that market's minimum are refused unless they take everything the offer has left. Choosing an offer.

When do I have to repay?

By the due date, which is the moment the loan was drawn plus its term. After that a short grace window, fixed by the term, allows repayment with a late fee. After the grace window, repayment is impossible. Default and seizure.

Can I repay part of a loan?

No. A loan is repaid in full, in one transaction.

Can I extend a loan?

No. The term is fixed when the loan is drawn.

What happens if the collateral drops in value?

Nothing, during the term. There is no liquidation and no margin call. The choice at the end is the borrower's: repay and take the collateral back, or not.

Can someone else repay my loan?

Yes. Repaying does not need the loan token, so anyone with enough of the borrowed token can repay any loan. Claiming the collateral back does need the token.

I repaid. Where is my collateral?

Waiting to be claimed. Repaying and claiming are two separate steps; open the loan and choose Claim collateral. There is no deadline. Getting collateral back.

What happens if I miss the deadline?

Once the grace window closes, the loan can no longer be repaid and the lender can take all of the collateral. The loan closes for good.

Positions

How does the app know which positions are mine?

By looking at what the wallet holds. Every position comes with a token, and the interface matches the wallet's tokens against the ledger. Nothing is stored. Finding your positions.

What happens if I reinstall my wallet?

Restore it from the seed phrase and every position comes back, because every position is a token. What does not come back is time: a deadline that passed in the meantime has passed. Recovery.

What if I lose my offer token or loan token?

A seed phrase restore recovers it. Without that, a lost loan token strands the collateral after repayment, and a lost offer token strands every repayment and seizure on that offer. Losing or sending a position token.

Privacy

What can other people see?

Every offer, loan, amount, date and outcome, but never who is behind any of them. What is visible and what is not.

Is it safe to share my shielded address?

Not with anyone who should not see the positions it has been paid for. Anyone holding a shielded address can work out every payout it has received from AMP Finance. Use a separate wallet for the protocol. Sharing a shielded address.

Does shielding hide the amount?

No. Amounts are always public. Shielding hides who holds and moves them.

Troubleshooting

My wallet is not listed, or it was refused

The wallets are browser extensions for desktop browsers; mobile devices are not supported. The picker lists every supported wallet it finds, with an install link for any that are missing, and asks an outdated one to update. A wallet that is found but refused is usually on a different Midnight network from the interface. The message names the network to switch to. The network.

A transaction failed. Can I just try again?

Check first. A transaction can go through even when the wallet window closes or an error appears, and a second attempt after a successful first one is a second real transaction. Open Positions or the wallet, see whether the first one landed, and only then try again. When something does not go through lists every message and what to do about it.

A transaction seems stuck

Proving and confirming take tens of seconds, and the first time an action is used the interface also downloads a file of up to about 19 MB. The progress shows which stage it is in. Keep the wallet open until it is done. What happens during a transaction.

My wallet has no DUST

DUST builds up on its own from holding NIGHT, and a wallet with none cannot send anything. Get NIGHT from Midnight's faucet, keep it in the wallet, and wait a few minutes. Network fees, paid in DUST.

A position is missing

The wallet may still be syncing, the position's token may be in a different wallet, or the position may be settled and now under History. When a position does not appear.

Where do I report a problem?

Email team@ampfinance.io with what was being done, the message the interface showed, and the time it happened. Never include a seed phrase; nobody from AMP Finance will ask for one.