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Synclear debt rounds allow on-chain businesses to access structured credit from institutional lenders without leaving the on-chain environment. A business creates a credit facility with defined economic and legal parameters; institutional lenders vetted and approved by Synclear commit capital to the facility; funds are disbursed to the borrower’s treasury wallet on-chain. Repayment, including principal and interest, follows the schedule encoded in the facility contract. Every step produces an immutable on-chain record. Debt rounds are non-dilutive and designed for businesses with predictable cash flows or identifiable collateral. They are appropriate for working capital, expansion financing, or bridging ahead of a larger equity raise.

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Facility Parameters

The following parameters define the economics and obligations of a debt facility. All parameters are set by the borrower during term sheet configuration and are fixed at facility deployment unless an amendment process is triggered.
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uint256
required
The total credit commitment, denominated in a supported stablecoin (USDC, USDT, or DAI). This is the maximum amount disbursable under the facility. Partial draws are permitted up to this amount.
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uint256
required
Annual interest rate expressed in basis points (e.g., 800 = 8% per annum). Interest accrues daily on the outstanding drawn balance. Synclear supports fixed rates only at this time; variable rate facilities are on the roadmap.
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uint256
required
Unix timestamp of facility maturity. All outstanding principal and accrued interest must be repaid by this date. Facilities that remain outstanding at maturity enter the default resolution process automatically.
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uint256
required
Duration (in days) from facility activation within which the borrower may draw funds. Draws after the draw period are rejected by the contract. The draw period must be shorter than or equal to the maturity duration.
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enum
required
Defines the required repayment cadence. Options: bullet (full repayment at maturity), monthly_interest (interest-only monthly, principal at maturity), amortizing (equal principal + interest payments on a defined schedule).
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address
The ERC-20 token address of the collateral asset posted by the borrower. Required for secured facilities. Accepted collateral types include major stablecoins, ETH, WBTC, and RWA tokens listed in Synclear’s collateral registry.
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uint256
Minimum collateralization ratio expressed in basis points (e.g., 15000 = 150%). If collateral value falls below this ratio, a margin call is triggered. Required if collateral_asset is specified.
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uint256
Fee charged on early repayment of principal, in basis points. Set to 0 if no early repayment penalty applies. Applies to the repaid principal amount above the scheduled repayment.

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Collateral

Secured facilities require the borrower to deposit collateral into the facility escrow contract before funds are disbursed. The collateral contract:
  • Holds collateral in a non-custodial escrow; neither the borrower nor the lender has unilateral access.
  • Continuously monitors the collateral-to-outstanding ratio using price feeds from Synclear’s oracle layer.
  • Issues an on-chain margin call event if the ratio breaches the collateral_ratio threshold.
If a margin call is not resolved — either by topping up collateral or repaying sufficient principal — within the cure period (default: 72 hours), the facility contract may liquidate collateral to recover outstanding amounts. Configure collateral buffers well above the minimum ratio to avoid involuntary liquidation.

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Repayment

Repayments are made by sending the required stablecoin amount to the facility contract from your verified treasury wallet. The contract applies incoming payments in the following order: (1) overdue fees, (2) accrued interest, (3) principal.
Repayment due dates and amounts are encoded in the facility contract at deployment. The Synclear dashboard displays upcoming repayment obligations with T-7 and T-1 reminders. Scheduled repayments can be automated using Synclear’s payment scheduler, which initiates on-chain transfers from your treasury wallet on the due date without manual intervention.
Early repayment is permitted at any time. The dashboard calculates the current payoff amount (outstanding principal + accrued interest + early repayment fee, if applicable). Submit the payoff amount to the facility contract to close the position. Any collateral held in escrow is released atomically upon full repayment.
A facility enters default if: (a) a scheduled repayment is missed by more than the grace period (default: 5 business days), (b) an unresolved margin call exceeds the cure period, or (c) the borrower entity’s compliance status is suspended. Upon default, the facility contract enforces the remedies defined at deployment — typically collateral liquidation to satisfy outstanding obligations. Unsecured facility defaults are escalated to Synclear’s recovery process, which may involve off-chain legal action depending on the facility agreement.

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Facility Lifecycle

1

Configure Term Sheet

Navigate to Fundraise → New Debt Round. Input all facility parameters: principal, interest rate, maturity, draw period, repayment schedule, and collateral requirements. The dashboard generates a term sheet summary for review before any on-chain action.
2

Lender Matching and Commitment

Synclear presents the anonymized term sheet to its institutional lender network. Interested lenders submit commitments. You can review lender profiles (institution type, commitment size) and accept or reject individual commitments. A facility may be funded by one or multiple lenders; the contract handles pro-rata disbursement accordingly.
3

Post Collateral

For secured facilities, deposit the required collateral amount to the facility escrow address from your verified treasury wallet. The contract verifies the deposit and collateral ratio before proceeding to activation.
4

Deploy and Activate Facility

Once lender commitments meet the minimum funding threshold and collateral (if required) is confirmed, the facility contract is deployed. Lender capital is transferred into the facility escrow and the draw period begins.
5

Draw Funds

Submit a draw request from the dashboard specifying the amount (up to the undrawn principal). The facility contract releases the requested amount to your verified treasury wallet. Interest begins accruing on the drawn balance from the draw date.
6

Service and Repay

Make scheduled repayments from your treasury wallet per the facility schedule. Monitor the collateral ratio (for secured facilities) in the dashboard. Repay early or in full at any time to release collateral and close the facility.