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CONFIDENTIAL & PROPRIETARY © 2025 Inkwell Finance, Inc. All Rights Reserved. This document is for informational purposes only and does not constitute legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security or other financial instrument. Any examples, structures, or flows described here are design intent only and may change.

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General Questions

Revenue-based financing (RBF) is a type of loan where you borrow money and repay it based on your revenue performance, up to a fixed maximum cap. Unlike equity financing, you don’t give up ownership. Unlike traditional loans, your payments can flex with your revenue.Example: You borrow $100,000 at a 1.3x cap. You repay 5% of your monthly revenue until you’ve paid back $130,000 total. Then you’re done—no more payments, no ongoing obligations.
Traditional bank loan:
  • Fixed monthly payments regardless of revenue
  • Requires collateral and personal guarantees
  • Can force you into bankruptcy if you miss payments
Inkwell revenue-based loan:
  • Payments scale with your revenue (if revenue drops, payments drop)
  • No personal guarantees required (though collateral is optional)
  • Fixed cap means you know the maximum you’ll ever pay
  • More flexible during revenue fluctuations
Equity financing:
  • You give up ownership (5-20%+ of your company)
  • Investors get board seats and control
  • Investors profit indefinitely as your company grows
Inkwell revenue-based loan:
  • You keep 100% ownership
  • No board seats or governance rights for lenders
  • Fixed cap means lenders’ returns are capped
  • Once you hit the cap, you’re done—lenders have no further claim
No. Inkwell loans are structured as debt obligations with fixed repayment caps, not securities or investment contracts.You’re borrowing money and paying it back with interest—similar to a commercial loan or merchant cash advance. Lenders don’t get equity, governance rights, or perpetual revenue shares.However, this is not legal advice. Consult your own counsel for your specific situation.
Borrowers:
  • On-chain businesses (DeFi protocols, NFT projects, on-chain creators)
  • Off-chain businesses (SaaS, e-commerce, marketplaces)
  • Any business with measurable recurring revenue
Lenders:
  • Accredited investors
  • Institutional capital providers
  • Crypto credit funds
  • DAOs with treasury capital
  • Family offices

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For Borrowers

Loan amounts depend on your revenue history and the lender’s appetite. Typical ranges:
  • On-chain protocols: $500k - $10M
  • NFT projects: $100k - $2M
  • SaaS companies: $50k - $5M
  • On-chain creators: $25k - $500k
Your specific amount will depend on your revenue history, growth trajectory, and the loan terms you choose.
Common repayment caps are:
  • 1.2x - Lower cost, shorter term (e.g., 12 months)
  • 1.3x - Balanced option (e.g., 18 months)
  • 1.5x - More capital, longer term (e.g., 24 months)
Example: Borrow $100k at 1.3x cap = you repay maximum $130k total, then you’re done.
On-chain revenue: Under 3 minutes
  • Your revenue is already on the blockchain
  • Instant verification via oracles
  • Automated underwriting
Off-chain revenue: Hours to days
  • Need to connect accounting software or provide attestations
  • Manual review of revenue data
  • Standard underwriting process
If your revenue drops, your payments drop (or pause) automatically.Example: You agreed to repay 5% of monthly revenue. If your revenue is $50k, you pay $2,500. If revenue drops to $20k, you pay $1,000. If revenue drops to $0, you pay $0.The loan term extends, but you’re never forced into bankruptcy over fixed payments. You have time to recover or restructure.
No, collateral is optional. You can choose:Unsecured loan:
  • No collateral required
  • Based purely on revenue history
  • Higher repayment cap
Secured loan:
  • Provide on-chain collateral (tokens, LP positions, etc.)
  • Lower repayment cap
  • Collateral returned when loan is fully repaid
Yes! You can repay your loan early without penalty. Once you hit the repayment cap (or pay off the remaining balance), the loan is complete.Early repayment can save you money if you choose to pay more than the minimum revenue-based percentage.
Default handling depends on your loan terms:
  • Unsecured loans: Lenders may pursue restructuring or workout terms
  • Secured loans: Collateral may be used to repay lenders
  • Streaming loans: Automatic enforcement reduces default risk
The protocol surfaces your status to lenders, and you can negotiate restructuring options.

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For Lenders

Returns vary based on:
  • Borrower’s revenue history and risk profile
  • Repayment cap (1.2x, 1.3x, 1.5x, etc.)
  • Loan term and payment cadence
  • Whether the loan is secured or unsecured
Typical gross IRRs range from 15-30% depending on risk level.
When browsing deals, you’ll see:
  • Borrower’s revenue history
  • Requested principal amount
  • Repayment cap and term
  • Use of funds
  • Whether collateral is provided
You can filter by risk level, industry, loan size, and other criteria to find deals that match your investment mandate.
Yes, but only to other accredited investors via the secondary marketplace (coming in Phase 1).The secondary marketplace will allow:
  • Whitelisted transfers to verified accredited investors
  • Private order book for matching buyers and sellers
  • Instant liquidity for senior tranches
Retail investors cannot participate in secondary trading to maintain compliance.
On-chain loans:
  • Real-time streaming repayments via Superfluid/Sablier
  • Automatic enforcement, no manual processing
  • Much lower default rates (under 2% vs. 8-15% traditional)
Off-chain loans:
  • Monthly ACH pulls or wire transfers
  • Borrower commits to payment schedule
  • Protocol tracks total repaid amount
Your options depend on the loan structure:
  • Secured loans: Collateral is used to repay lenders
  • Syndicated loans: All lenders share losses pro-rata
  • Unsecured loans: May pursue restructuring or workout
The protocol surfaces borrower status and facilitates lender coordination.
Yes. To maintain compliance and avoid securities classification, Inkwell restricts lending to:
  • Accredited investors (US)
  • Qualified institutional investors
  • Institutional capital providers
You’ll need to verify your accreditation status before funding deals.

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Technical Questions

Phase 0 (Launch):
  • Sui (primary)
  • Ethereum (for off-chain revenue verification)
Future phases:
  • Additional EVM chains
  • Solana
  • Bitcoin (for collateral)
For on-chain businesses, revenue is automatically verified via:
  • Blockchain data: Protocol fees, token royalties, NFT sales are all public
  • Oracles: Real-time price feeds and revenue calculations
  • Smart contracts: Automatic tracking and enforcement
No manual data sharing required—everything is permissionless and verifiable.
For off-chain businesses, you can:
  • Connect accounting software: QuickBooks, Xero, etc.
  • Connect payment processors: Stripe, PayPal, Shopify, etc.
  • Provide attestations: Trusted third-party data providers
You only share what’s needed for underwriting, and sensitive data stays private.
Streaming repayments use protocols like Superfluid or Sablier to send payments in real-time:
  • Instead of monthly lump sums, payments flow continuously (every second)
  • Borrower’s wallet automatically streams a percentage of revenue to lenders
  • Much lower default rates because payments are automatic
  • Only available for on-chain revenue
On-chain data:
  • Already public on the blockchain
  • No additional privacy concerns
Off-chain data:
  • Encrypted in transit and at rest
  • Only shared with lenders who fund your deal
  • You control what data is shared
  • Sensitive business details stay private
Sui wallets:
  • Sui Wallet
  • Suiet
  • Ethos Wallet
  • Martian Wallet
EVM wallets:
  • MetaMask
  • WalletConnect
  • Coinbase Wallet
  • Rainbow
More wallets will be added over time.
Inkwell is designed to operate as a decentralized lending protocol that facilitates debt-based loans, not securities.The protocol is structured to:
  • Fail the Howey test (not an investment contract)
  • Pass the Reves test (commercial loan)
  • Comply with commercial lending regulations
However, regulations vary by jurisdiction. Consult your own legal counsel.
Phase 0:
  • United States (accredited investors only)
  • Select international jurisdictions
Future phases:
  • Expanded international support
  • Jurisdiction-specific compliance
Check the platform for your specific jurisdiction’s availability.
For borrowers:
  • Loans are generally not taxable income
  • Interest/fees may be tax-deductible
  • Consult your tax advisor
For lenders:
  • Returns are generally taxable as interest income
  • Tax treatment varies by jurisdiction
  • Consult your tax advisor
This is not tax advice. Always consult a qualified tax professional.
Inkwell is designed with regulatory flexibility:
  • Protocol-level parameters can be updated
  • Loan structures can be adjusted
  • Compliance frameworks can evolve
The team monitors regulatory developments and adapts the protocol accordingly.

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Getting Started

  1. Connect your wallet to the Inkwell platform
  2. Verify your revenue (on-chain or off-chain)
  3. Create a loan request with your desired terms
  4. Wait for lenders to fund your deal
  5. Receive funds and start making repayments
For on-chain revenue, approval can happen in under 3 minutes!
  1. Verify accreditation status
  2. Connect your wallet to the Inkwell platform
  3. Browse available deals and filter by your criteria
  4. Fund deals that match your investment mandate
  5. Receive repayments automatically on-chain
You can fund partial amounts (syndicated) or entire deals.
Our team and community are here to help!

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Still have questions?

Can’t find what you’re looking for? Join our Discord or reach out to us at [email protected]. For institutional inquiries, see the Institutional Overview or contact [email protected].