Project Concept
ReFiHub LLC has developed a decentralized application on the Solana blockchain, accessible at ReFiHub App. The platform’s primary objective is to enable users to lend to or invest in sustainable businesses using cryptocurrency.
Mission & Impact
ReFiHub’s mission is to create a positive global impact by supporting businesses aligned with the United Nations Sustainable Development Goals (SDGs). The platform focuses on the following SDGs and impact areas:
- SDG 7: Affordable and Clean Energy
- SDG 12: Responsible Consumption & Production
- SDG 13: Climate Action
- SDG 14: Life Below Water
Key Impact Metrics Tracked:
- Tonnes of Carbon Dioxide Removed or Avoided
- Tonnes of Plastic Waste Removed or Prevented from Entering the Ocean
- MegaWatts of Clean Energy Produced
- Number of Jobs Created in Sustainable Sectors
- Percentage of Supply Chain Transparency Achieved
User Registration & Compliance
To access ReFiHub’s services as a lender, investor, borrower, or recipient, users must register on the platform. This process includes reading and accepting the Terms and Conditions and Privacy Policy, as well as completing the Know Your Customer (KYC) or Know Your Business (KYB) verification procedures.
KYC Verification Tiers:
- Tier 1 KYC: Basic verification with ID check, allowing investments up to $50,000 USD.
- Tier 2 KYC: Additional documentation required (e.g., proof of address), enabling unlimited investments and full platform access.
Investment Models
Lending Model
ReFiHub offers lending agreements where users lend funds to businesses in exchange for periodic repayments of the loan principal with accrued interest. This provides investors with a steady income stream and a lower-risk investment option.
Investment Process:
- Browse Opportunities: Explore a curated list of pre-vetted businesses seeking loans.
- Make Your Investment: Choose an amount to lend, lock in a fixed interest rate, and receive Loan Agreement Tokens (LATs).
- Funds Disbursement: Approved funds are securely transferred to the business.
- Track Impact: Monitor business progress and sustainability impact through the platform.
- Receive Repayments: Earn interest payments regularly until the loan matures.
Ownership Model
Through ReFiHub’s ownership model, investors receive a share of the total revenue generated by a project. Unlike traditional equity, this model offers consistent returns tied directly to the project’s revenue performance.
Investment Process:
- Select a Business: Choose sustainability-focused businesses or infrastructure projects vetted for impact and profitability.
- Invest for Revenue Share: Purchase Fractional Ownership Tokens (FITs) to secure a share of the business’s revenue.
- Track & Claim ROI: Monitor business performance and claim revenue shares over time.
Funding Targets
- Hard Cap: The maximum funding goal a business aims to secure. Once reached, funding is considered complete, and the project can proceed.
- Soft Cap: The minimum amount needed for a project to achieve its mission. If not met, funds are refunded to investors, ensuring transparency and accountability.
Business Vetting Process
All businesses on ReFiHub undergo rigorous vetting based on operational, financial, and impact assessments:
- Initial Application & Interviews: Evaluation of feasibility, experience, and commitment.
- Impact Assessment: Ensures businesses make significant environmental contributions.
- Financial & Risk Analysis: Conducted by financial experts and AI-powered risk assessor, Wiserfunding.
Risk Management & Investor Protection
- Collateralization: Some investments are backed by real-world assets (e.g., machinery, real estate, inventory, patents).
- Guaranteed Investments: Some businesses are backed by legally bound guarantors who cover loan defaults or missed payments.
In the event of a default, ReFiHub takes action on behalf of investors to recover funds. Once recovered, funds are proportionally distributed to investors. Investors can also opt to manage legal proceedings independently.
Fee Structure
- User Platform Fees: 2.5% structuring fee on investments, covering platform maintenance and business vetting.
- Business Structuring Fee: 2.5% fee for businesses, supporting funding success from listing to completion.
Community & Marketing
ReFiHub is closely connected with Coral Tribe and its Community Fund. Learn More About Coral Tribe
Investment Attractiveness
Currently, there are no active investment opportunities. However, one round of financing for a solar plant, totaling $32,500, was successfully completed and is now closed.