Loan Terms

The exact terms of each working capital loan will vary since each validator network and/or Party Host will differ. It is up to each Party Host to propose realistic terms based on the network of their choosing and their ability to pay back the loan + interest. To increase a proposal's chance of approval, terms should be negotiated with PartyNode DAO before putting it up in the Party Portal.

Check the [Screening Process] section to better understand what to expect when applying for PartyNode working capital.

Loan Repayment

The main idea with issuing working capital loans for operators is for them to run their validators until they can save up enough to repay the loan in full (plus interest), while still maintaining enough stake to keep their validator running. Each validator/node network will differ in regards to stake value and APY. These two factors will ultimately determine the break even time frame and when PartyNode DAO can be expected to be repaid in full + interest.

Although, it is not necessarily required to run a validator until the break even point. An operator can choose to run a validator for a certain amount of time, then return the loan and split the profit. This strategy should be discussed with PartyNode DAO and stipulated within the final proposal.

Interest & Penalties

Party Hosts can pay back the loan early but there may be a minimum fee required. There will never be any additional penalties. All interest pecentages, fees, and payment schedule requirements should be decided and confirmed with PartyNode DAO before a proposal is submitted.