# Decentralized Finance (DeFi) Services

**1. Introduction**

The FTT platform offers decentralized finance (DeFi) services, focusing on asset-backed lending. By leveraging blockchain technology, we ensure complete security, decentralization, and trustless transactions. The core components of the platform include a **Factory contract**, **Lending contracts**, **Escrow contracts**, and **Arbitration services**. This document outlines the architecture and flow of the platform.

**2. System Architecture**

The DeFi lending process consists of the following components:

1. **Factory Contract**:
   * The Factory contract is responsible for creating new lending contracts. Each loan transaction initiated on the platform will generate a unique lending contract.
   * The Factory contract ensures that no single party can control the flow of funds or access sensitive data, maintaining the decentralized nature of the platform.
2. **Lending Contracts**:
   * Each lending contract is tied to a specific asset and outlines the terms of the loan, such as the amount, repayment schedule, interest rates, and ownership transfer conditions.
   * The contract provides full transparency and ensures that the buyer (borrower) must adhere to the agreed terms.
3. **Escrow Contract**:
   * The escrow contract facilitates the transaction between the buyer and seller. Upon completion of the transaction, the ownership of the goods is transferred to the DeFi contract, ensuring that the buyer only receives the goods once the terms are fulfilled.
   * After the transaction is finalized, the ownership of the goods is recorded on the blockchain, making it tamper-proof and transparent.
4. **Arbitration System**:
   * The platform has an **arbitration system** in place, which acts as an oversight mechanism. This ensures that in the event of disputes or breaches of contract, the platform can intervene to enforce the rules.
   * Arbitration is limited to resolving conflicts and does not interfere with user funds or withdrawal rights.
5. **No Withdrawal Rights for FTT Platform**:
   * FTT platform itself does not have the ability to withdraw funds from any contract. This eliminates the risk of mismanagement or unauthorized withdrawals.
   * Only the escrow contract manages the fund flow, ensuring that the parties involved can interact securely and transparently.

**3. Process Flow**

1. **Loan Initiation**:
   * A borrower requests a loan by interacting with the Factory contract, which creates a new lending contract tied to the requested asset. The buyer (borrower) must deposit collateral in the contract as a guarantee.
2. **Escrow Transaction**:
   * The escrow contract holds the asset (goods) and ensures the ownership transfer occurs once the terms of the loan are met.
   * Upon the completion of the agreement, the goods are transferred to the DeFi contract.
3. **Repayment Process**:
   * The buyer (borrower) repays the loan by making payments directly to the DeFi contract, adhering to the agreed-upon schedule.
   * Once the full repayment is completed, the contract ensures that the collateral is returned to the buyer, and the transaction is considered fulfilled.
4. **Lender Withdrawal**:
   * The lender (fund provider) can withdraw the funds from the DeFi contract at any time once the buyer completes the repayment.
   * The platform guarantees that the lender has access to their funds as long as the buyer follows the terms and completes the repayment.
