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What do borrowers need to know about gas fees on NFTfi?

July 04, 20233 min read

NFTfi Blog thumbnail borrower fees explained

NFTfi is the most trusted NFT lending protocol, where you can use your NFTs to take out wETH, DAI, and USDC loans. In this article, we explain everything a borrower needs to know about gas fees (fees paid to validators when using independent wallet applications) on NFTfi.

It is important to note that outside of the operations where gas fees are required, borrowers incur no additional or platform fees to use NFTfi. There is a 0% protocol fee to borrow on NFTfi.

When do borrowers pay gas fees on NFTfi?

As a borrower, there are a number of operations for which you will incur gas fees in order to take out a loan against your NFT.

The operations requiring gas fees are:

  1. Approving NFTfi to interact with your NFT. Approval is only required once per NFT collection, except for CryptoKitties (CK), where it must be done for each individual kitty since CKs are not fully ERC-721 compliant.
  2. Starting a loan. Each time you start a new loan, you have to pay a gas fee because the asset is moved from your wallet to NFTfi escrow smart contract.
  3. Approving the NFTfi smart contract to spend wETH, USDC, or DAI the first time that you repay a loan. This is a one-time transaction.
  4. Repaying a loan. Each time you repay a loan, you have to pay a gas fee because the asset is moved from the NFTfi escrow smart contract and back to your wallet.
  5. Accepting renegotiation offers. Each time you renegotiate an existing active loan, you'll need to accept and confirm the new loan terms. You can learn more about renegotiations here.
  6. Bundling multiple NFTs. For borrowers considering taking out a loan using multiple NFTs as collateral, NFTfi bundles can be a gas-efficient way to do so, as unlike bundle solutions on alternative platforms, NFTfi bundles can be modified and reused (you will pay gas when creating and managing your bundles). For more information on bundles, read our blog post.

Borrowers do not incur gas fees for other operations. For example, there is no fee for listing or delisting an NFT on NFTfi, specifying your desired loan terms, or receiving offers.

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If you are new to NFTfi, you can check out this video for a quick overview, read our beginner-friendly guides to both Lending and Borrowing, stay up to date by following our Twitter, and chat with experienced users by joining our thriving Discord community.

This article is for educational and informational purposes only and should not be considered financial advice. Conduct your own research and due diligence before making any investment or financial decisions, such as when considering novel products including NFT loans.


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