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# List and Swap NFT's Used as Collateral

Users can access immediate liquidity by collateralizing and borrowing against their NFT's. ParaSpace likewise allows the user to list that NFT for swapping on its NFT marketplace.

## Why Collateralize NFT and List for Swap on ParaSpace Marketplace?

ParaSpace protocol allows users to immediately access liquidity once they collateralize and borrow against their NFT. The ParaSpace NFT marketplace further allows users who collateralize their NFT to list their NFT for swap even as they have borrowed against it.
In effect the user can more quickly access capital as they look for a buyer, and the subsequent collateral swap will retire the user's debt and swap the proceeds of the sale as collateral in the user's account as interest-earning collateral for borrowing.

### Are There Restrictions on Selling Price for Collateralized NFT's?

Users who borrow against their NFT can swap that same NFT (or any other collateralized asset in their account) as long as that sale keeps their account Health Factor above 1. As an example, a user might deposit a Bored Ape Yacht Club NFT when the collection Floor Price is at 85 ETH. According to our Asset Risk table they can borrow up to 30% against said Floor Price, or in this case 25.5 ETH.
The same user can list the same NFT for swap as long as the net selling price keeps their Health Factor above 1. Health Factor as a reminder is the calculation which sums the value of the user's existing collateral multiplied by the Liquidation Threshold over total borrows and interest owed.
​In the simple example above, the user's Health Factor is calculated by:
$Health \ Factor = \frac{BAYC \ Floor \ Price_i \ in \ ETH \times Liquidation \ Threshold_{BAYC}} {Amount \ Borrowed + Interest \ Owed}$
A user can perform a collateral swap and list their BAYC token for sale as long as the transaction leaves their Health Factor above 1. Note that transactions incur a 1.5% protocol fee in addition to the 5% Bored Ape Yacht Club royalty fee. Also the proceeds of the BAYC token sale will be automatically added as collateral to the user's account, and we can add the future credits to the minimum sale price.
Thus the minimum price for a successful collateral swap could be calculated as:
$\frac{Loan + Interest}{Liquidation \ Threshold}<(1 + Fees)\cdot Net \ Price + LTV_{Collateral} \cdot Net \ Price$
solving for the above the user would need to receive at least
$21.9 \ ETH + 1.52 \times Interest$
for a successful collateral swap. This is obviously substantially below the initial Floor Price of 85 ETH and thus provides the user with a comfortable margin with which to perform collateral swaps.