General

Have the Smart Contracts Been Audited?

Yes, the NiftyApes Seller Financing protocol has been audited by Quantstamp. We have tests written for every line of code and have additional audits scheduled in 2023.

Why hasn’t this been done before?

Seller financing has been a common practice in traditional finance and various industries for quite some time. So far other NFT lending protocols have focused on 3rd party liquidity models which require additional capital and increased risk in a transaction. NiftyApes is the first protocol in the NFT and Web3 space to enable seller financing and we believe it is here to stay.

Is seller financing available on all NFTs?

Seller financing is possible on any ERC721 NFT, however it is up to the individual seller whether to offer financing and to set the terms.

What terms are typically included in a seller financing agreement?

Our smart contracts allow for a lot of flexibility! Sellers can set custom down payments, interest rates, repayment periods, and grace periods for each asset.

Are there any risks involved in seller financing for NFTs?

Yes, there are risks for both buyers and sellers. Buyers risk losing their investment if they fail to make payments, while sellers risk not receiving full payment and needing to re-list their NFT if the buyer defaults.

What are NiftyApes Seller Financing tickets?

NiftyApes Seller Financing tickets are minted to both the buyer and seller in a loan and represent each party's debt obligation or debt ownership. These tickets can be bought, sold, and transferred to other addresses. When a loan is repaid or an NFT is seized these tickets are both burned.

Can the buyer or seller sell or transfer the loan to a third-party lender?

Yes! Seller financing tickets are ERC721 NFTs and can be transferred to any other address. This allows for easy transferability between a user’s wallets, or even being resold on marketplaces like OpenSea!

Can I buy and sell NFTs with seller financing from a smart contract?

Of course, smart contracts can interact directly with the NiftyApes Seller Financing contracts. There are special conditions to be aware of if you are buying and selling NFTs from a smart contract though. In short, your contract must implement onERC721Receive() and be able to receive ETH. Check out our protocol warnings page for more information.

Creators and Sellers

Why should I sell with seller financing?

By offering seller financing, you can attract more buyers and you can sell your NFTs at higher prices since buyers will pay a premium to be able to pay over time. If you are an artist, you build a direct relationship with your collectors demonstrating your confidence in the value of your work and that you are dedicated to making your art more accessible to more collectors.

As an Artist, won’t this weaken my brand?

On the contrary, seller financing can actually enhance your brand. By offering the option of paying in installments, you can attract buyers who are willing to pay a higher price for your art, you signal your confidence in the value of your work, and you build a direct relationship with your collectors. This offers can ultimately strengthen your brand's reputation and appeal.

I have limited finance experience. How do I know what terms to offer?

NiftyApes has made the process straightforward by providing a few common, pre-selected financing options in the NiftyApes UI library so integrating marketplaces and easily offer it them to you. As you gain more experience, you can utilize the "Custom Listing" feature to customize the terms to your preference.

Can I charge interest on seller-financed NFTs?

Yes. As a seller you can charge interest on seller-financed NFTs. You can also set the sale price, the down payment amount and length of the financing. If you don’t know what terms you’d like to offer, we give you a few easy, pre-populated options to choose from.

How do I transfer the NFT to the buyer once they've completed their payments?

Upon completion of all payments, the smart contract will automatically transfer the NFT to the buyer's digital wallet.

What happens if the buyer forgets a payment?

When a payment is late, the seller has the right to seize the asset, but doesn’t have to. If the asset has not been seized, buyers can make a late payment up to one pay period late. This offers the buyer and seller the opportunity to communicate before a seller seizes an NFT. If the buyer does not make up their payment before the end of the soft grace period they can no longer make a late payment and the seller can only seize the NFT.

What happens if the buyer defaults on the sale?

When a Buyer has not made a payment by the end of the pay period, the Seller may reclaim the asset, and the Buyer loses the asset as well as any payments put towards the financing. Sellers always keep the NFT, the down payment, and any other payments made toward the loan.

Can I resell NFTs that I've reclaimed?

Absolutely. One of the advantages of seller financing is that, in the event of a buyer default, you regain possession of your NFT and get to keep any payments they've made up until that point. You are free to resell the repossessed NFTs as you wish.

Can I list multiple NFTs for sale at once?

Yes, seller Financing can be offered on any ERC 721 NFT at any time.

Can I sell my NFT with seller financing on any platform?

Not all platforms support seller financing for NFTs yet. However, we’re working with several major NFT marketplaces to offer this feature.

Currently, you can list your NFT’s for sale on:
NiftyApes marketplace - marketplace.niftyapes.money

Collectors and Buyers

Why should I buy with seller financing?

Seller financing allows you to buy NFTs with just a down payment, allowing you to increase your purchasing power and acquire the pieces you want. This allows you to acquire more NFTs than you would have been able to otherwise, diversifying and expanding your collection. You can also sell any NFTs you have purchased with seller financing at any time as long as the sale pays off your loan principal and relevant interest.

Can I use my NFT that I have purchased with seller financing?

Absolutely. During the loan a buyer can utilize their purchased NFT on any platform, protocol, or service that supports Delegate.cash, including Collab.land, Vulcan.xyz, Tokenproof, and many more.

Can I sell the NFT that I purchased with seller financing?

After purchasing an NFT with seller financing you can sell your NFT at any time as long as the sale is more than the remaining principal plus any interest due on the loan. Selling your NFT will automatically close your loan. If the price you sell at is higher than your purchase price, you will make a profit. If the price you sell at is lower, you will incur a loss.

What happens if I forget a payment?

What happens if I default on a loan?

When a Buyer has not made a payment by the end of the pay period, the Seller may repossess the asset, and the Buyer loses the asset as well as any payments put towards the financing. Sellers always keep the NFT, the down payment, and any other payments made toward the loan.

Can I only make money with Seller Financing during bull markets?

No, the daily volatility of NFTs is often higher than the premium price charged by sellers for offering financing, buyers can generate returns even in bear markets.

Do you have a backtesting model that can help me get started?

Why yes, we do. Click here.

Marketplaces

Why Should I integrate Seller Financing into my Marketplace?

Marketplaces may experience increased sales volume, increased user retention, and always receive any fee they would like to charge in full, up front when they use the MarketplaceIntegration.sol smart contract. In addition, NiftyApes provides an easy to use API, SDK, and UI library making integration as simple as possible. We are also always improving our smart contract protocol and ensuring the highest degree of security possible.