Credentials

Locale Lending uses Soulbound Tokens (SBTs) — non-transferable NFTs that prove verification status without exposing personal data.

Credential Types

BorrowerCredential

Issued to borrowers who complete KYC verification.

Field	Description
tokenId	Unique identifier
holder	Wallet address
kycLevel	Verification tier (Basic/Enhanced)
issuedAt	Issuance timestamp
expiresAt	Expiration timestamp
revoked	Revocation status

InvestorCredential

Issued to investors who complete accreditation verification.

Level	Requirements
Retail	Basic KYC verification
Accredited	Income/net worth verification
Qualified	Enhanced verification for institutional features

KYC Verification Levels

Basic KYC

Required for all borrowers:

• Identity Verification — Plaid IDV integration
• Government ID — Passport, driver's license, or ID card
• Liveness Check — Selfie matching

Enhanced KYC

Required for loans exceeding $100K:

• Address Verification — Utility bill or bank statement
• Income Verification — Bank transaction analysis
• Business Registration — For business loans

Soulbound Properties

These credentials are designed to be non-transferable:

Property	Description
Non-transferable	Cannot be sent to another address
Non-sellable	Cannot be listed on marketplaces
Bound	Permanently linked to minting address
Privacy-preserving	No personal data on-chain

Zero-Knowledge Integration

Credentials support ZK proofs for privacy:

Capability	Description
Verify Without Revealing	Prove credential status without exposing details
Threshold Proofs	Prove DSCR meets minimum without exact value
Age Verification	Prove credential is valid without timestamp

Credential Lifecycle

Issuance

1. User completes verification (KYC/accreditation)
2. Backend generates credential data
3. Admin mints SBT to user's wallet
4. Credential becomes active

Validity Period

Credential Type	Validity
BorrowerCredential	1 year
InvestorCredential (Retail)	2 years
InvestorCredential (Accredited)	1 year

Renewal

• Users must re-verify before expiration
• New credential minted upon successful re-verification
• Old credential marked as expired

Revocation

Credentials can be revoked for:

• Fraud Detection — Suspicious activity
• Failed Re-verification — Identity changes
• User Request — Self-revocation
• Regulatory Compliance — Legal requirements

Revocation is immediate upon detection.

Technical Implementation

Contract Interface

Function	Description
mint	Issue credential to verified user
revoke	Revoke credential by token ID
isValid	Check if holder has valid credential
getCredential	Retrieve credential details

Events

Event	Description
CredentialMinted	Emitted when new credential issued
CredentialRevoked	Emitted when credential revoked
CredentialExpired	Emitted when credential expires

Access Control

Credentials gate access to platform features:

Feature	Required Credential
Apply for loan	BorrowerCredential (Basic)
Large loans (>$100K)	BorrowerCredential (Enhanced)
Stake in pools	InvestorCredential (Retail)
Create pools	InvestorCredential (Accredited)

Next Steps

• Loan Structure — How loans work
• Verification — ZK verification system
• For Borrowers — Borrower guide