Unlockd Account

The Unlockd Account is a cornerstone feature of the Unlockd platform, enabling a seamless and secure fusion of asset liquidity and utility.

This specialized account functions similarly to a multi-signature wallet and is essential for engaging in activities involving debt on Unlockd, such as taking out instant loans or using the 'Bid-Now-Pay-Later' feature in marketplace auctions.

There's no such thing as "signing up" here, this is not a Web 2 account. You do not need an email or password; it's created linking your personal wallet as an authorized signer.

Core Functionality

The Unlockd Account operates as a shared wallet, making it a requisite for any debt-related transactions. It's built on the reliable security infrastructure of Gnosis Safe, providing a trusted environment for your transactions. Although it’s recommended for all transactions on the platform, it’s mandatory when you want to take an instant loan or engage in any debt-related activity.

Setting Up Your Unlockd Account

Creating your Unlockd Account is straightforward:

1. Prompted during your first borrowing action or when opting for 'Bid-Now-Pay-Later'.

2. Connect your personal wallet (like Metamask or Coinbase Wallet) to Unlockd.

3. Approve the creation of a shared wallet, where you're one of three signers – the user, the Delegate Owner, and the Protocol Owner.

4. A gas fee is required for setup; however, using this account will result in lower transaction costs compared to using a standard wallet.

5. Once created, you can access your Unlockd Account by connecting your personal wallet through WalletConnect, offering a hassle-free user experience.

Asset Transfer and Gas Implications

All transfers into and out of your Unlockd Account, whether depositing assets for a loan or withdrawing them back to your personal wallet, require gas. It’s important for users to factor in these transaction costs when managing their assets within the Unlockd ecosystem.

Asset Management and Utility

Your Unlockd Account is versatile:

Before a Loan

Use it as a standard wallet to deposit, withdraw, and manage assets freely.

Checking Collateral Eligibility

To ascertain if your assets are eligible for use as collateral without transferring them, simply connect your personal wallet to the Unlockd platform. The Unlockd Account will read the tokenized assets in your wallet and indicate which ones are eligible for collateralization, streamlining the pre-loan preparation.

Pre-Loan Asset Analysis

Before initiating a loan, you might want to evaluate which assets to bundle based on their valuation and the potential Loan-To-Value (LTV) ratio. To facilitate this, transfer the assets you’re considering as collateral from your personal wallet to your Unlockd Account. It's here that you'll be able to see detailed appraisals and LTV calculations for each asset.

After Loan Initiation

Specific assets used as collateral are managed jointly by you and Unlockd, with two additional signers stepping in to facilitate and safeguard operations.

Thanks to this, you keep full custody and ownership of all deposited assets.

Not Unlockd, not any decentralized smart contract. You are the owner of your assets.

Learn more here:

Keep Custody & Ownership

Signers and their roles

Once you decide to activate a loan using selected assets in your Unlockd Account, these assets enter a shared control mechanism:

• Delegate Owner: Handles collateral assets' delegation.

• Protocol Owner: Engages in two scenarios:

  • Liquidation: Automatically intervenes to liquidate part of the collateral if necessary to recover the loan’s health factor, following our Liquidation Process.

  • Marketplace Transactions: Manages listings or auctions of assets on the Unlockd Marketplace, whether they're with or without debt.

Liquidation and Market Participation

• Multi-Signature Dynamics: When assets are in an active loan, the Delegate Owner and Protocol Owner have joint control to optimize protocol health and maintain asset utility. All transactions performed by the user are executed through one of these two signers.

• Loan Repayment and Asset Freedom: While assets are in an active loan, they reside in your Unlockd Account but are subject to the conditions of the loan. Free assets not under loan can still be transacted freely.