> For the complete documentation index, see [llms.txt](https://docs.yumi.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.yumi.finance/credit/faq.md).

# FAQ

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<summary>TLDR;</summary>

Yumi provides infrastructure for crypto cards, allowing them to **issue unsecured consumer credit**. Yumi handles all the risk, and the i**ntegration is minimal** - we work alongside your current infrastructure, financing logic, and support VISA/Mastercard cards

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<summary>TLDR: How does it work?</summary>

Our **loans are purely uncollateralized**. Because we&#x20;

* **KYC** the user – knowing their identity enables debt collection and credit reporting if they default.
* Underwrite the user - we use their wallet, bank, and other data sources to **assess the risk with AI and algorithms**.

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<summary>How long does it take to integrate</summary>

Most teams integrate our SDK/APIs in a week

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<summary>How do you underwrite the user?</summary>

We underwrite them based on a **mix of onchain and offchain data**. The card provider can **share the available data** with us, or we can **request it directly from the user**.\
\
We use **zkTLS** and **Open Banking** to access users' credit scores, employment status, tax reports, and other data to underwrite people around the globe better.

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<summary>What is the APR? Is there a revenue share?</summary>

Yumi's **APR is 14% on average,** but depends on the credit model and consumer. As a card provider, you are free to **add any markup** you want. You can configure this in our dashboard (TBD).

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<summary>Does the user have to pass KYC?</summary>

**Yes.** We don't work with non-KYC cards.

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<summary>How do you handle repayments?</summary>

There are **two options**: the **automated repayment** from the card account or a **manual repayment** from any account the user prefers.

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<summary>How do you handle defaults?</summary>

We work with **debt collection agencies** to service the bad debt. In some cases, we can **freeze assets** on a user's account.

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<summary>Would we need to issue a credit card?</summary>

No, your entire **infrastructure can stay the same**. We work with regular **VISA/Mastercard cards**. The only difference is that instead of taking the money from the user's wallet, you take it from our pool.

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<summary>Do we need to change any of our existing logic?</summary>

The **integration is minimal.**\
Backend: You must call Yumi's API only during the authorization and settlement phases. We don't introduce any delay. You can read more in[API](/credit/api.md).\
Frontend: We will provide a **React Native SDK** for you to integrate our KYC flow into your app.&#x20;

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<summary>Do we need to deploy any new smart contracts?</summary>

No. It is **backend/frontend** integration.

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<summary>Do you work with both JIT and a Pre-funded model? </summary>

Yes, we **support any card infrastructure**.

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<summary>What is the credit limit?</summary>

We're planning an **initial average limit of \~$500 per user**. That is **adjustable** according to the customer profile.

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<summary>Who funds the user's loan? Who's responsible for defaults?</summary>

**Yumi takes on ALL the risk**. We use **private capita**l and, later, DeFi, to fund the loans. If a user defaults, Yumi eats the loss (**defaults are fully accounted fo**r in our model, so Yumi can afford to do that and remain profitable).

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<summary>When does Yumi fund the loan?</summary>

We support funding both **during the authorization phase** (the card provider can pull funds from our account) and **in batches** at the end of the day (any period).\
This depends on your compliance and risk management preferences.

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<summary>Is there a demo live?</summary>

Yes. Please contact us to **schedule a live demo** or get the **Loom video**.

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