Bid Now, Pay Later

Unlockd's Marketplace enhances the NFT acquisition experience with its "Bid-Now-Pay-Later" feature, a unique blend of bidding and instant loan creation.

This feature simplifies the process of acquiring NFTs by instantly leveraging them as collateral for a new loan.

The Mechanics of Bid-Now-Pay-Later

  • Instant Loan Creation: When you successfully bid on an NFT using the Bid-Now-Pay-Later option, an immediate loan is created in Unlockd, with the purchased NFT serving as collateral. This integration streamlines the process, allowing you to acquire NFTs without upfront capital.

  • New Loan Terms: The loan associated with your successful bid has its terms set based on the current market conditions and the specifics of the NFT, according to our appraisal engine and Dynamic LTV. This means each successful bid results in a fresh loan agreement, tailored to the moment's dynamics.

Interest on Outbids

If your bid is outbid by another user, a small portion of the deposited ETH is used to cover the interest accrued during the Bid-Now-Pay-Later period.

This interest charge is typically minimal, especially if the Utilization Rate is reasonable, ensuring that the impact on your funds is small even in a competitive bidding environment.


If the first bidder is outbid by others, or the original owner of the NFT repays to recover the HF, they receive a 2.5% reward as an incentive for initiating the bidding process.


Clear Distinction in Debt Responsibility

  • No Inherited Debt for Bidders: Importantly, when bidding on an NFT that already has a loan against it, you do not inherit the existing debt. Instead, the payment for the successful bid, whether it's your own funds or provided by Unlockd, is used to close the current loan on the NFT.

  • Starting a New Loan Cycle: Once the existing loan is closed, a new loan is opened for you, the successful bidder, creating a clear separation between the previous owner’s debt and your new loan.

Advantages of Bid-Now-Pay-Later

  • Flexibility for Buyers: This feature provides flexibility, especially for those who may be waiting for liquidity or prefer staggered payment arrangements.

  • Dynamic Marketplace: For sellers, this feature attracts a wider range of bidders, potentially increasing the competitiveness and final sale prices of NFTs.

Responsible Use of Bid-Now-Pay-Later

It’s essential for bidders using this feature to understand the commitment they are making. Successful bids lead to immediate loan obligations with new terms based on current market evaluations.

As with any loan on Unlockd, managing your borrowing responsibly is crucial. Ensure you understand the terms, including interest rates and repayment schedules, associated with the new loan generated by your successful bid.


This approach offers a powerful tool for buyers, providing a convenient way to acquire desired NFTs while ensuring clear and responsible financial arrangements.

For a comprehensive understanding of how to utilize Bid-Now-Pay-Later, including detailed insights into loan creation and management, please refer to our marketplace and loan documentation.

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