As part of the JPG Store shutdown process, new lending and borrowing activity will be disabled. However, existing loans will continue until their natural expiry.
JPG Store lending operates via smart contracts on the Cardano blockchain. This means loan terms are enforced on-chain and cannot be modified once initiated.
This guide explains:
What happens to active loans
How repayment works during shutdown
What happens if a loan expires
FAQs for both borrowers and lenders
What Happens to Existing Loans?
During Restriction Mode:
❌ New loans are disabled
❌ New borrow/lend actions are disabled
✅ Existing loans continue normally
✅ Borrowers can repay loans
✅ Liquidation rules remain active
Because loans on JPG Store have a maximum duration of 14 days, the shutdown timeline ensures all active loans can naturally complete before the platform enters withdrawal-only mode.
No loans will be forcibly closed early due to shutdown.
Repayment Process
If you are a borrower, you must repay the loan before the expiry deadline to recover your NFT collateral.
Step 1: Connect Your Wallet
Visit https://www.jpg.store
Click Connect Wallet in the top-right corner
Select your wallet (e.g. Vespr Wallet)
Approve the connection inside your wallet (If required)
Step 2: Go to Your Profile
Hover over your profile icon in the top-right corner
Select Profile
Navigate to the loans tab
Then select the borrowing tab
Finally select the In Progress tab
You will see a list of all active loans where you are borrowing ADA.
Step 3: Repay the loan
Select Repay to begin the transaction to repay the loan
Approve the transaction in your wallet
Once confirmed on-chain:
The lender receives principal + agreed interest
Your NFT collateral is returned to your wallet
You must have sufficient ADA available to cover:
The loan principal
Interest
Network transaction fees
Troubleshooting Loan Repayment issues
If you are having issues repaying a loan even though you have enough available ADA balance in your wallet try the following.
Make an internal transfer to your own wallet for the amount of ADA required to repay the loan + 10 ADA.
Try using the unfrack.it tool to optimize your wallet
These methods help with utxo related errors when making transactions on the store.
Loan Expiry and Liquidation Timeline
Loans continue under their original smart contract terms.
If Repaid Before Expiry
NFT returns to borrower
Lender receives ADA + interest
Loan closes successfully
If Not Repaid Before Expiry
The loan automatically becomes claimable by the lender
The lender can claim the NFT collateral
The borrower forfeits the NFT
There is no manual override once the expiry time has passed, as enforcement is handled by the smart contract.
Shutdown Phase Interaction with Loans
Phase | Loan Status |
Restriction Mode | Loans continue until expiry |
Withdrawal-Only Mode | All loans should be completed |
Final Shutdown | No active loans remain |
FAQ for Borrowers
Can I still repay during shutdown?
Yes. Repayment remains fully functional until your loan expires.
What if I miss the deadline?
If the loan expires:
The lender gains the right to claim your NFT
You cannot reverse liquidation
Smart contracts enforce the timeline strictly.
Will JPG Store extend my loan due to shutdown?
No. Loan terms cannot be altered once created.
Do I need to do anything if I already repaid?
No further action is required once the repayment transaction confirms on-chain.
FAQ for Lenders
Can I still fund new loans?
No. New lending activity is disabled during Restriction Mode.
What happens if the borrower repays?
You automatically receive:
Your principal
The agreed interest
Funds are returned directly to your wallet once the repayment transaction confirms.
What happens if the borrower does not repay?
After expiry:
You can claim the NFT collateral
The claim is executed via smart contract
You must connect your wallet and complete the claim transaction.
Will interest still be paid during shutdown?
Yes. Loan contracts continue to operate exactly as agreed until expiry.
What if I forget to claim collateral after expiry?
You should claim as soon as possible during Restriction Mode. After full shutdown, web interface access may no longer be available.
Important Reminders
Wallet connection remains active during Restriction Mode
Repayment functionality remains active
All loans must naturally complete within 14 days of Restriction Mode beginning
There are no early forced liquidations
What You Should Do Now
If you are:
A borrower
Check your loan expiry date
Repay before the deadline
A lender
Monitor repayment status
Be prepared to claim collateral if needed
