FAQ
What is Precept?
A lending protocol on Stellar, built by Templar. Each market is isolated and has its own assets, parameters and risk.
How do I use it?
The app is at precept.templarfi.org. Get started walks through each step. It works with Freighter, xBull, Albedo, LOBSTR, Hana and MetaMask, and you need some XLM for network fees and your account's minimum balance.
What makes Precept different?
Each market is isolated, and its rules are fixed once it is live. Lenders earn all the interest and take any loss themselves, so no token-based reserve sits between them and the risk. Flash loans and emissions are switched off. See How Precept works.
Is my deposit insured?
No. There is no insurance fund, and the backstop contract cannot cover a lender's loss. If a borrower defaults and the collateral does not cover the debt, the lenders of that reserve take the loss. See Risks.
Does a loss in one market affect another?
No. A loss is settled inside the reserve it came from. It lowers the value of that reserve's lender positions and reaches no other reserve or market.
Does Precept charge fees?
Precept contracts charge no protocol fee, and the backstop's share of interest is zero. You still pay Stellar network fees. Borrowers pay interest, which goes to lenders.
Is there a token or rewards program?
No. Emissions cannot be configured on a Precept market, and neither markets nor the backstop distribute rewards. The tokens you may see in a market's activation contracts are placeholders with no value. See The disabled backstop.
Who can change a market?
Very little can change once a market is live. The market admin can change its status, switch a reserve off after a one-week delay, and hand over the admin role. The oracle is governed separately and can change how a market is priced. Risks lists every lever. Pool, backstop and factory code cannot be upgraded.
Can an admin take my funds?
The market admin has no function that moves a lender's or borrower's funds. The oracle is a different kind of risk, because a bad price can trigger liquidations or let someone borrow too much. See The oracle is the single point of failure.
How do I know a market is real?
Find it through Official markets, and compare its full contract address. Market names and token symbols are chosen by whoever deploys them, so they prove nothing.
Why does the app refuse something the contract allows?
The app sets some limits of its own: a lower borrowing limit than the contract, and launch limits on deposits. A direct contract call is not bound by them. See App limits.
Who runs liquidations?
External operators. Anyone can open or fill a liquidation auction, and Templar does not run or direct them. See Liquidators.
Have the contracts been audited?
Yes. Guardian reviewed Precept's contract changes and found no Critical, High or Medium issues. Code4rena and Certora audited the code those changes build on. An audit lowers the risk of a contract bug but does not remove it. The reports are linked from Security and audits.
How are the markets monitored?
Precept uses Hypernative for threat detection, and is setting up a public risk dashboard and a Telegram alert channel for curators. These tools report problems, but they do not prevent a loss or watch your position for you. The setup is being finalized, and the dashboard link is forthcoming. See Monitoring.
Where can I get help?
Contact support, or ask on Discord or Telegram. Nobody from Templar needs your seed phrase or private key, so never share them.