At Obligate, investing is an easy and simple way to earn money. You can subscribe to bond issuance programs and earn interest on the principal amount at maturity. The issuance terms and interest rate are set by borrowers. To start investing, you need to have the asset used as the eNote's denomination (i.e. USDC) in their Polygon wallet and also have some MATIC to cover gas fees. Furthermore, you need to register the wallets you would like to use in your account. This allows Obligate to whitelist the wallets within our platform.
How to invest
1. Log into your Obligate account and view the marketplace to see an overview of all available issuance programs. Click on an issuance program to see more details.
2. The details page of the issuance program gives you an overview of the issuance terms (i.e. interest rate, coupon frequency, tenor, book building deadline, and maturity date) and a preview of the eNotes. If available any additional information on the company, the deal, and additional documents attached to the issuance can be found here.
3. Once you have selected an issuance program to invest in, click on the subscribe button at the bottom of the issuance program details page. This page allows you to enter your investment amount and sign your subscription with your wallet. You do not pay your investment at this stage. Only after the book building deadline, if the issuance program meets its financing goal, will you be notified to pay your investment before the issuance date.
4. If the issuance program meets its financing goal before the book building deadline, the borrower will execute the issuance program on chain and open funding for all investors. If the financing goal is not met, the issuer can decide to either execute the issuance partially and the investors having subscribed are obligated to pay their investment amounts, or to cancel the issuance. You will be notified via e-mail and can then pay your investment amount any time before the issuance date on obligate.com with your wallet. You will receive a transaction confirmation via e-mail. The funds are kept in an escrow account before issuance date and will only be transferred to the borrower on the issuance date.
5. On the issuance date you will receive the eNotes for your investment as ERC20 tokens in your wallet. You will receive a transaction confirmation via e-mail. You can view your eNotes in your portfolio. You can access the concluded issuance program any time in your order history.
6. On each scheduled payment date eNotes holders will receive payment redemption tokens that allow them to claim the repaid amount from the escrow.
How to claim repayment
1. Once the borrower has repaid a coupon or principal, you will be notified via email.
2. You can claim your redemption amount in your portfolio, by opening the eNotes with the status repaid. Below the eNote you can click on claim and the redemption amount will be transferred to your wallet. You can only claim your redemption amount with the same wallet that holds the payment redemption token. These eNote NFTs will be burned in your wallet upon redemption.
3. You can access all settled eNotes on your settled eNotes page. You will receive a transaction confirmation via e-mail.
How to transfer eNotes
Currently Obligate does not offer a secondary market for eNotes. If you would like to transfer your eNote to someone else or another wallet, you can do this outside of our platform. The wallet the holds eNote at the scheduled payment date receives the redemption token. Remember that only the wallet holding the payment redemption token can claim the repayment on maturity.