SOFIN (Social Financial Network) — P2P-lending online service based on blockchain. This marketplace platform, that brings creditors and borrowers together:
- Creditor — individuals, banks, microfinance organizations and funds
- Borrower — individuals, entrepreneurs, and organizations
Loans are issued in a fiat currency of the borrower country of residence. This allows the currency to be exchanged through the SOFIN token among creditors and borrowers from different countries.
On our website you can see the demo version of the platform.
SOFIN mission – to remove barriers and borders to grant the less developed countries access to financial recourses. We will address the daily needs of average individuals and entrepreneurs, opening up decentralized access to finances on the terms convenient to both parties, and not to a financial bank entity or any other intermediary.
Each potential borrower must undergo a verification process based on the methodology we have developed and tested—proved to be successful in our online-IFI. Each verified borrower will be awarded a credit rating, which will aide the prospective creditor in the investing decision. In every country, our local representative will correlate the local merits of credit scoring (ergo, analogous
NBCH, FSI, RPF, FSSP, etc.) for the most accurate risk assessment. Our level of pre-judicial settlement is 17%. This is a very high rate for microcredit market. Legal purity and transparency of each transaction. The loan is given in the fiat rate in currency of the borrower, according to the law. Therefore, creditor has a clear and legitimate reason to repay his loan.
Verification takes place within the following parameters:
- Passport validity of citizenship
- Verifying borrower in the executive productions data bank
- Checking borrower for bankruptcy
- Convictions and trials currently in progress
- Database of terrorists and extremists
- Verifying the credit score of the borrower in the credit ratings bureau–only banks and microfinance organizations have access to credit ratings under the law, our access will be provided through the IFI’s partner
- IP address of the borrower
- Social media networks—there are more than 10 factors per network
- Employer organization for existence at TIN\PSRN\Name
- Location of the borrower on cellular data
- Bill payment history, such bills like telephone, utility, etc.
- Verifying contact information of the borrower
We will integrate the local verification services in every country (read more on how to connect new countries in the Road Map).
Using Tokens in the System
The tokens within the system will be used as follows. The creditor (or the pool of creditors within a single loan) and the borrower will the same fiat rate currency. The creditor will be able to exchange one fiat currency to another using our tokens in the system. The entire loan amount is distributed in fiat. If a part of the loan is in cryptocurrency, the system automatically converts the loan to fiat currency of the borrower. The borrower pays a percentage to the system before receiving credit (up to 5% of the amount in SOFIN tokens that will be purchased automatically from the exchanges). This is the main source of income of the service: these funds are used to pay the bonuses and cashback in SOFIN — 1.5% to the borrower and 1.5% to the creditor. When the borrower repays the loan the creditor will have a choice to get the entire income in fiat or take a part of it with tokens. Also a part of the loan amount (1.5% to the creditor and 1.5% to the borrower) will return with tokens as cashback. A part of a loan (up to 20%) can be issued with tokens that the system will automatically buy and transfer to the fiat currency for the borrower. The integration of other cryptocurrencies with the possibility of issuing loans up to 100% will be pursued. Tokens can be used as an intermediate link in exchange of one fiat currency to another to issue loans in the currency of the borrower. Token holders will receive some advantages over ordinary users of the system (external differences in the service interface, more profitable bonus terms, etc.).
Why Do We Need Blockchain?
- Transparency of all transactions performed on the platform – all reporting systems can be verified
- Automated processes through smart contracts
- Convenience in working with cryptocurrencies on Ethereum ERC 20
- Integration with other projects on blockchain (such as registers, credit scoring, statistical services)
- Reliability and fault proof
Benefits of SOFIN Tokens
- A part of the loan (up to 20%) can be issued with the SOFIN tokens that the system will automatically buy at a profitable rate and transfer to fiat for the borrower. The integration of other cryptocurrencies with the possibility of issuing loans up to 100% will be pursued.
- Tokens can be used as a mediator link in exchange of one fiat currency to another to issue loans in the currency of the borrower.
- Large token holders will be identified as trusted members of the system. They will have more profitable loan terms, if necessary. Such holders will receive a bonus — a two-fold fee of the system to make loans for their tokens. The system will provide a guarantee for such borrowers in case of a default, that will cover the loan instantaneously by taking it as a loss out of the company funds. However, in the future the delay of funds will be covered via purchase of mortgage tokens from the borrower. These borrowers will thus have the highest ranking in the system and, as a result, will be able to attract investments on the most profitable terms, as the investor will ask for a minimum low rate of risk at almost zero
- Token holders will receive some advantages over the common users of the system (ergo, external differences in the service interface, more profitable bonus terms, etc.)
- The P2P system will receive the fee, up to 5%, in the SOFIN tokens, which will be automatically purchased from the exchange on each loan. This is the main source of income of the service: these funds are used to pay the bonuses and cashback in SOFIN — 1.5% to the borrower and 1.5% to the creditor. When the borrower repays the loan the creditor will have a choice to get the entire income in fiat or take a part of it with tokens.
Electronic Loan Agreement
A loan agreement signed by an equivalent handwritten signature has legal force in the RF, USA, EU and other countries and regions of the world. The EHS is generated by the platform by sending the digital code to the mobile phone of the contract party. All the relationships of the sides on the platform are through the electronic workflow through the preparation of the platform and the signing the relevant documents by the parties:
- Loan agreement
- Extension of a loan
- Issuance and withdrawal of bail
- A surety agreement
- Assignment of a claim under an obligation arising from a contract
2010 Rostov region guarantee fund
Creation of the structure that allows entrepreneurs to obtain the necessary funding through the fund's surety.In three years, the amount of bail was $51 million.
2011 Offline MFO Expressmoney
Opening the network of microloan points where the verification of the borrower (private individual), the legal basis and the highly profitable financial model were obtained. The business was successfully sold.
2012 Opened the Verum law firm
The company provides legal support for construction and investment projects, including foreign investment. The Verum ( verum-law.ru ) team of seven persons forms the Legal Service of the SOFIN company.
2013 Miming rigs, cryptotrading
Creation of own mining rigs. Extensive experience in cryptocurrencies trade, investing in cryptoprojects.
2013 Opened the Elonsoft IT company
Formation of a team with experience in the development of international-level Internet projects, including the creation of MVP for startups. There are 16 programmers now who will be working on the SOFIN platform after the ICO implementation
2014 Private P2P loans to entrepreneurs
Since 2014 and to the present day, a successful experience of connecting people who have money and legal persons who need credit. The interest rate allows each party to earn. To date, there have been no returns. Currently, the loan portfolio exceeds $1.5 million.
August 2016 P2P platform concept
The idea of creating marketplace financial resources on a single window system where individuals and companies can get loans from any people,MFOs, banks. With a minimum and transparent rate in auction mode.
August 2016 Launch of MFO Loan CLub
Building a loan and verification system for borrowers online ( clubzaimov.ru ). Development of scoring software, integration with credit history systems and online processing. Gaining experience of attracting borrowers on the Internet. In this project, we've worked out all the important elements of a future P2P platform, and there are 14 people working in the company.
July 2017 - to date Commencement of system development
Definition of the development financial model. Designation of the technical part of the platform, the interface design, and programming of business logic.
December 11, 2017 ICO
Fundraising on development of the platform, the token output on exchanges, the establishment of the Guarantee Fund and international expansion.
Q1 2018 Token on exchanges
The SOFIN token public offering on the cryptocurrency exchanges for free bidding. Implementation of the token-support strategy and increase it to $20. The direct correlation between the rate growth and the repayment of loans on the platform is achieved through the return of the SOFIN tokens for the transaction bonus payments laid down in the platform
Q1-2 2018 Launch of the platform in Russia and the Guarantee fund option
The first issue of loans through the SOFIN platform from the MFOs partners, early followers, and our own funds. Once the guarantee fund has been launched and the risk of repayment has been reduced, it is planned to attract a large number of creditors.
Q3-4 2018 Launch of the platfrom in the CIS countries
Issuing loans in Russian-speaking countries, starting with Georgia and Kazakhstan and the next step in Ukraine and Belarus. In each country where we will issue loans, a local office will be opened to interact with the verification, scoring and credit history systems for the country. 100% legal purity, which is a distinctive feature of our platform, will be provided. In the same way, local partners in every country are planned for loans . The target of 2018 - 1$ million
2019 Launch of one country per quarter
Great promise and growing market for P2P lending are concentrated in the regions: Asia, Africa and Latin America. The first countries outside the CIS in which we start lending will be Myanmar and Cambodia.
Crypto-currency enthusiast, Icodriver & IT expert
Rated on 2017-10-20
ico advisor and investor
Rated on 2018-04-04
I like the team and the project. The WP is also well done. A good idea if successfully implemented
ICO and Blockchain Advisor. Full Stack and Ethereum/Solidity smart contract developer.
Rated on 2018-04-02
ICO ADVISOR | CONSULTING | LinkedIn PROMOTION
Rated on 2018-04-19
Co-founder/CEO @ 7MARKETZ Inc. Group | Blockchain ICO Consultant / Advisor | Public Speaker | Author
Rated on 2018-03-30
Good team, ambitious vision, or better call imagination, however i am not quite sold with the project.
- Seychelles - rather do it with no jurisdiction, they have no power anyway
- Tokenomics need a revamp
- How do you handle loan defaults?
- %%%%%???? Same as micro loans?
NOTE: Review was made on 30/03/2018 after Andrey Tuchkov's inmail request.
Rated on 2018-04-08
Co-Founder Node, ICO&Business Advisor, Investor
Rated on 2018-03-25
Experienced team and strong advisers. A promising product
Investor, Crypto Visionary, FinTech Pro, ICO Advisor and Consultant
Rated on 2018-04-16
0. Idea and principles behind the SOFIN P2P loans is OK. These would work, been them developed and delivered in a full compliance with the modern AML, KYC and loan international regulations and industry requirements.
1. No Team KYC done.
2. Team doesn't show any adequate to the task international business connections.
3. Team has some very strong professionals, yet I can see how very important positions are
4. Seychelles domicile is a big no-no for far too many reasons, if you are going to be in any type of the retail financial business in any developed country. Cost of operations and compliance will sky rocket the very same moment, when some of your local partners/agents/operators will be regulated outside of Seychelles.
5. Costs for any international litigation is inadequately high for the majority of small and medium loans. It is unclear, to what degree the SOFIN team will support a creditor in a case of a loan default, yet it is clear, that it will cost a lot either to a SOFIN (hurting it's financials) or to a creditor (hurting SOFIN's reputation).
6. Borrowers verification with a credit card doesn't look good at all.
7. Tokenomics looks to be disadvantageous for later ICO investors.
8. This team has a micro financing business in Russia. Which is good in terms of experience. What is bad about it, is that microfinance institution charges 2% per day (which would be a up to 2700% annually with a daily compound interest). Sounds more like a loan shark business to me. I would argue, that it hurts more than it helps the community.
Overall feel is that this ICO campaign is poorly managed or simply neglected by the founders.
UPDATE 15.04.2018: given some updates of the project, rates have been just risen. Yet there are some unsolved issues on the surface.
Entrepreneur | CEO | ICO Advisor | Crypto enthusiast | Blockchain expert | Public speaker | Mentor
Rated on 2018-04-11
ICO Analyzer Bot
Rated on 2018-04-20