# FAQs **Q.1: What is HyDRAULIC?** It's a Web3 platform using blockchain & DeFi to unlock cash from your Intellectual Property (IP)! Think loans backed by patents, trademarks etc. **Q.2: What problem does HyDRAULIC solve?** Makes it easier for IP owners to get loans! Turns intangible IP into liquid assets. **Q.3: How does HyDRAULIC turn IP into collateral?** We represent verified IP rights as NFTs on the blockchain. These IP NFTs can then be used as collateral for loans **Q.4: How is IP valued on HyDRAULIC?** We use a mix: 3rd party experts, AI analysis , and our unique[ decentralized Oracle system](https://docs.hydrau.lc/technology/ip-valuation-oracle) with input from many IP pros! **Q.5: P2P vs P2Pool loans - What's the difference?** P2P: Direct loan between YOU and ONE lender. P2Pool: Borrow from a large pool funded by MANY liquidity providers (LPs) **Q.7: Who is HyDRAULIC for?** IP Owners (creators, businesses), Investors/Lenders, Liquidity Providers, Legal/Financial Pros involved in IP. **Q.8: What's the $DRAU token for?** $DRAU is our utility token! Used for: Paying platform fees (valuation, loans) Staking (potential requirement for pros/users) Rewards (for valuators, LPs etc) (Check official[ tokenomics](https://docs.hydrau.lc/resources/tokenomics) for full details!) **Q.9: How can I lend or provide liquidity?** P2P: Fund a specific loan request directly. P2Pool: Deposit funds (e.g., stablecoins) into a liquidity pool to earn passive interest. **Q.10: What are the risks for BORROWERS?** Main risk: Defaulting on your loan! If you miss payments past the grace period, you could lose your IP NFT collateral. **Q.11: What are the risks for LENDERS / LPs?** Main risk: Borrower default. P2P: You get the NFT, but need to monetize it. P2Pool: Loss is shared, but depends on selling the defaulted NFT via auction/sale. Also, general DeFi risks (smart contracts). **Q.12: What happens if a borrower defaults?** After a grace period, liquidation starts: P2P: NFT usually goes to the lender. P2Pool: NFT goes to a protocol contract for auction/sale to repay the pool. **Q.13: How secure is HyDRAULIC?** We focus on security via: audited smart contracts, blockchain transparency, secure off-chain processes. Always DYOR & check our audits! **Q.14: Is the IP NFT value static?** For triggering liquidation, YES (based on initial valuation ). Liquidation only happens on payment default. But the final sale price during liquidation depends on the market then . **Q.15: Which blockchain does HyDRAULIC use?** Initially on Polygon, with plan for multichain deployment. Check our official announcements for further up to date info! **Q.16: How do I get started?** 1\. Get a Web3 wallet (e.g., MetaMask) . 2\. Visit our official dApp/platform. 3\. Connect wallet & explore! (Valuation, borrow, lend, pool). Read guides first! **Q17: What fees are there?** Expect fees like: Valuation Fee Loan Origination Fee Interest (paid by borrower) Potential Liquidation Fees Standard blockchain gas fees. Check our official Fee Schedule doc for details! **Q18: Does the NFT mean full ownership? Keep usage rights?** NFT = Collateral right mainly. Borrower usually keeps using the IP during the loan (unless default). Default means lender/pool gets control of the NFT To learn more about our team and work check out our core business website FAQs via the link below.