Goldfinch is the financial cooperative of the future and the beginning of a new financial system.

The 21st century, with its challenges in the global financial and economic system, poses difficult tasks for humanity, one of which is to give impetus to the development of entrepreneurship in developing countries, sometimes called third world states. But for any aspiring entrepreneur from such countries, the task of finding funding for a project is almost insurmountable. Unlike the pillars of capitalism, where, under certain conditions, it is possible to obtain financing from the classical banking system, in developing countries access to capital is limited. It is the problem of access to the capital market that the Goldfinch protocol solves. As stated by the mission of the protocol: " We are building a decentralized credit platform that empowers financial inclusion." How is this implemented?

In the Goldfinch smart contract system, there are 4 types of users:

1. Borrowers;

2. Backers;

3. Auditors;

4. Investors - Providers of liquidity.

5. Borrowers are individuals who raise capital through a special smart contract called the Borrower Pool. By creating such a pool, the borrower offers the conditions on which he is ready to borrow, namely:
   ● Interest Rate: Fixed interest rate APR, e.g. 15%.
   ● Limit: Total capital that can be borrowed, e.g. $1M.
   ● Payment Period: Frequency of interest payments, e.g. every 30 days.
   ● Term: When the full principal is due, e.g. 365 days.
   ● Late Fee: Additional interest owed when payments are late, e.g. 5%

6. Backers are persons who have passed the KYC procedure who lend funds to the "Borrower's Pool" on the basis of the "first-loss capital" principle, which implies the most risky part of the investment, that is, the possibility of loss of which is the highest if The borrower will stop servicing the debt.

7. Auditors are persons who have passed the KYC procedure who evaluate the Borrower and monitor the reality of his statements and business, that is, legitimacy. An auditor can be any person who stakes a certain amount of GFI (Goldfinch protocol token).

8. Investors - Liquidity Providers are persons who have passed the KYC procedure who invest their funds in the Borrower's Pool, called the Senior Pool, on the terms offered by the protocol.

As you can see, the system is simple and complex at the same time, and in the following articles about the Goldfinch protocol, we will tell you more about the principles of its operation and the financial model.