Tomo Finance FAQ

The Official FAQ Site Of TomoFinance

Getting Started

What is TomoFinance?

TomoFinance is a portal to generate TAI, the stablecoin on TomoChain. With TomoFinance, you can manage your collateral as well as the generation of TAI.

TomoFinance works as a Decentralized Finance application on the TomoChain blockchain, managed by many smart contracts.

What is TomoChain?

TomoChain exists as a scalable blockchain-powered via the advanced Proof-of-Stake Voting consensus and is used commercially by companies globally. Its mission is to accelerate the worldwide adoption of blockchain technology by empowering today’s applications with technology that masks the friction of blockchain, all while retaining its underlying benefits.

TomoChain’s technology and DeFi-focused flagship products include:

  • Fast & Near-Zero Fees: 2000 TPS, 2-second block time, ~$0 gas fees, and EVM compatible

  • An array of original features and protocols is designed to support speed, privacy, usability, and liquidity needs all in one platform.


What is TOMO?

TomoChain (TOMO) is the native cryptocurrency of TomoChain.

TOMO is a reserve cryptocurrency for all third-party apps running on TomoChain. Being the protocol asset for the TomoChain infrastructure, TOMO is needed by all parties utilizing TomoChain to build dApps or issue and integrate cryptographic tokens into their dApps.

The supply of TOMO is fixed, long-term, and non-inflationary.

Check TOMO price at

What is Stablecoin?

Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference.

Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity's price such as gold.

Stablecoins achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives.

What is TRC-21?

Originated from the terminology ERC (Ethereum Request for Comments), TRC is a technical standard used for smart contracts on the TomoChain.

TRC-21 is a standard interface for tokens that allows token holders to pay transaction fees by the token itself.

What is TAI?

TAI is a TRC-21 token acting as Stablecoin. Users generate TAI by depositing collateral assets into TomoFinance.

Once generated, bought, or received, TAI can be used in the same manner as any other cryptocurrency: It can be sent to others, used as payments for goods and services.

What is CDP?

The Collateralized Debt Position (CDP) is a smart contract that runs on the TomoChain blockchain. It is a core component of the TAI Stablecoin System whose purpose is to create TAI in exchange for collateral which it then holds in escrow until the borrowed TAI is returned.

What is TFI?

TFI is a TRC-21 token that will be rewarded to users whenever they Payback TAI, partly or entirely. By staking TFI, users will hold a share of TomoFinance's reward from TomoChain's Masternode.


Do I need an account?

No. You do not need to create a new account to use TomoFinance. You can get started with Pantograph Extension or any WalletConnect-compatible wallets, such as Metamask, KeyringPro, Trust, etc.

How to create a CDP?

By depositing TOMO to borrow TAI, you will create a CDP.

From Home, click OPEN CDP.

Input the amount of TOMO you would like to deposit. Then Input the amount of TAI that you would like to generate. You may want to check the Collateralization Ratio as well as the Liquidation Price to make sure the Liquidation would not happen to your collateral.


Accept the Terms of Service, then click FINALIZE AND CREATE CDP. Click Confirm on Pantograph Extension or Metamask Extension to finish up.

Now your CDP is ready. Click OK to view your CDP Management page.

What is the minimum deposit?

Your deposit to TomoFinance should be at least 200 TOMO.

What is the Collateralization Ratio?

The Collateralization Ratio is the ratio between your collateral (TOMO) and your debt (generated TAI).

The Collateralization will vary when:

  • The price of your collateral changes

  • Your collateral varies

  • Your outstanding debt (including Interest) changes

You should keep this ratio above the Minimum Ratio, and as much higher than the Liquidation Ratio as possible.

What is the Minimum Ratio?

The Minimum Ratio is the minimum Collateralization Ratio allowed in your CDP.

In TomoFinance, the Minimum Ratio is 130%. This means you should deposit TOMO at least 1.3 times the value (in USD) of the desired amount of TAI that you would like to generate. Nevertheless, we recommend that you should keep the Collateralization Ratio above 150%.

E.g.: The price of TOMO is 1.3 USD. You would like to generate 100 TAI. So you need to deposit at least 130 USD of TOMO to CDP, which is 100 TOMO at least.

What is the Liquidation Ratio?

The Liquidation Ratio is the Collateralization Ratio at which the Liquidation happens.

What is the Liquidation Price?

The Liquidation Price is the price of the collateral asset at which the Liquidation happens.

It means when the Current Price of TOMO drops at the Liquidation Price, the Collateralization Ratio will drop at the Liquidation Ratio, and Liquidation will happen.

What is Liquidation?

Liquidation happens when the Collateralization Ratio drops at the Liquidation Ratio. In other words, when your collateral-to-debt ratio hits 110%, Liquidation will happen to your CDP.

When Liquidation happens, your asset is liquidated and will be sold on the market. You will also be charged for the Liquidation Penalty valued at 10% of your collateral.

What happens if my CDP enters the liquidation?

When you receive a notification saying "Your TOMO CDP has entered the liquidation", it means that your collateral has been liquidated.

Your asset will be sold on the market and what remains in your CDP is TAI. You can hold this Stable Coin or exchange it on Pantograph Dex or Luaswap.

What is Staking in TomoFinance?

Staking TFI refers to the process of putting TFI into the Masternodes system in order to get sTFI which is also TRC-21. The ratio of staking is 1:1. For example, once you stake 100 TFI, you will receive 100 sTFI. Please note that the minimum for staking is 100 TFI

This contribution to the network provides you with staking rewards according to the proportion of your sTFI within the total amount of sTFI. For instance, if the total sTFI of the whole system is 1200 sTFI and you own 120 sTFI, the proportion will be 10%.

Every Wednesday at 3:00 AM GMT, staking rewards are distributed to users staking TFI. From that time, users are able to check received rewards on Do not forget to use your address.

Please note that you must keep your TFI staked until the rewards are delivered. If you unstake T by the time the rewards are distributed, you will not receive rewards. Users can update information on Twitter of TomoFinance:

Additionally, you can unstake your sTFI with no minimum and at no cost. When you unstake 80 sTFI, you will receive 80 TFI with no transaction fee.

What is Voting in TomoFinance?

Voting is a function dedicated to holders of TFI. Namely, anyone owning TFI can vote for proposals that affect the operation and function of the entire system. 1 vote equals 10 TFI and you can give as many votes as you wish.

Furthermore, you can unvote your vote at any time. Please note that there is limited time for voting and requirements for vote figures.

How to deposit more TOMO to CDP?

On the CDP Management page, click DEPOSIT. Input the amount of TOMO you would like to deposit. Click DEPOSIT to proceed.

You will also see the real-time update of the New Liquidation Price and the New Collateralization Ratio.

How to Payback TAI?

You can Payback TAI partly or entirely.

On the CDP Management page, click PAYBACK to start the Payback Process.

Input the amount of TAI that you would like to Payback, or click MAX to Payback entirely of your borrowed TAI. Please be noticed that Generated TAI also includes the accrued Interest.

The Collateralization Ratio and the Liquidation Price will change according to the input amount.

Click PAYBACK to proceed.

How to withdraw TOMO?

To withdraw TOMO from CDP, you should Request Withdrawal first.

On the CDP Management page, click on REQUEST WITHDRAWAL.

Input the amount of TOMO you would like to withdraw, or click MAX to withdraw entirely of your available TOMO. Click REQUEST to proceed.

After 48 hours from the Request, you will be able to withdraw TOMO.

Please be noticed that only after finish the last withdrawal, should you be allowed to make a new Request Withdrawal. This means between Request Withdrawal and Withdraw actions, the REQUEST WITHDRAWAL button will be disabled.

What is the Maximum available to Request?

The Maximum amount of TOMO that you can Request to Withdraw bases on 02 conditions:

  • The Collateralization Ratio of the CDP should be from 130%

  • The remaining amount of TOMO in the CDP should be at least 200 TOMO.

The TomoFinance system will check through the 02 above conditions then show the Maximum available to Request for the CDP.

E.g 1: You deposited 350 TOMO (1 TOMO = $1.2) and generated 150 TAI, which results in a Collateralization Ratio of 280%. - The Collateralization Ratio should be from 130% You can withdraw a maximum 350 x $1.2 - (130% x $150) = $225 = 187.5 TOMO - CDP should remain at least 200 TOMO If you withdraw 187.5 TOMO, your CDP will remain 350 - 187.5 = 162.5 TOMO < 200 TOMO => Not OK So, you can only withdraw 350 - 200 = 150 TOMO. => Hence, the Maximum available to Request for your CDP would be 150 TOMO.

E.g 2: You deposited 350 TOMO (1 TOMO = $1.2) and generated 150 TAI, which results in a Collateralization Ratio of 280%. Then you decide to generate 50 more, which makes your total borrowed TAI now 200 TAI. Supposes that the current TOMO price is still $1.2: - The Collateralization Ratio should be from 130% You can withdraw a maximum 350 x $1.2 - (130% x $200) = $160 = 133.3 TOMO - CDP should remain at least 200 TOMO If you withdraw 133.3 TOMO, your CDP will remain 350 - 133.3 = 216.7 TOMO > 200 TOMO => OK => Hence, the Maximum available to Request for your CDP would be 133.3 TOMO.

Why Generated TAI keeps increasing?

On the CDP Management page, you will see your Generated TAI keeps increasing even though you did not Generate any more TAI.

This is the Interest you have to pay CDP for your debt. It's 10%/year on your collateral and will accrue per block.

Whenever you Payback TAI, the outstanding debt will be updated. The new outstanding debt would be the remaining TAI plus Interest at the Payback time.

E.g: You generated 100 TAI, and the accrued Interest is 5 TAI. Then you choose to Payback 50 TAI, which results in the new outstanding debt of 55 TAI. The Interest would then be reset and continue to accumulate based on this new outstanding debt.

Please be noticed that although the Interest accrues per block, TomoFinance will display the Interest per 02 blocks since the Interest per block is very little.

Is Interest in TomoFinance fixed or floating?

The Interest in TomoFinance is subject to change during your borrow, so it's floating.

E.g: At the initiation of your CDP, the Interest is 10%/year. Then the Interest is down to 8%. From that moment, if you choose to keep your CDP, your Interest will be updated at the rate of 8% instead of the original 10%.


Is TomoFinance secure?

Security is our top priority. We stringently follow the best security practices and regularly conduct smart contract and code audits. In addition, the TomoFinance code is open-source, giving everyone in the community the ability to pressure test and audit the core technology.

Can TomoFinance or anyone else access the funds in my account or wallet?

No. You - and only you - have access and control over your assets, including TAI. TomoFinance uses blockchain technology to ensure the highest level of trust and transparency, and because of the way blockchain technology works, you ultimately get to decide just how secure you want it to be.

This does mean you are your own security ultimately, so it is very important you keep access to your TAI and the TomoFinance account secure.


Why can't I open CDP?

As mentioned above, the minimum deposit should be 200 TOMO. Hence, if you input a lower than 200 number of TOMO, you cannot proceed with the generation of CDP.

There is also a condition about the Collateralization Ratio:

  • If the Collateralization Ratio is 150% or above: The CDP is safe, and the ratio will turn green. You can create CDP freely.

  • If the Collateralization Ratio is above 130% and below 150%: The CDP may be at risk and the ratio will turn yellow. You can still create this CDP, but there will be a warning message.

  • If the Collateralization Ratio is 130% or below: The CDP is at risk and the ratio will turn yellow. There will be a warning message and you cannot open this CDP.

  • If the Collateralization Ratio is 110% or below: This is the ratio at which Liquidation happens to the CDP. There will be a warning message and the ratio will turn red. You cannot open this CDP.

What should I do to avoid Liquidation?

Please keep an eye on your CDP to keep the Collateralization Ratio to as much higher ratio than the Liquidation Ratio as possible.

To increase the Collateralization Ratio, you can do either of these ways:

  • Deposit more TOMO to your CDP

  • Payback borrowed TAI (including accrued Interest at the payback time)

Do I have to return borrowed TAI if my CDP gets Liquidation?

If Liquidation happens to your CDP, your collateral will be liquidated. The TomoFinance system will sell your TOMO at a price that is valued at 110% of your borrowed TAI. This sale will cover your borrowed TAI plus 10% as Liquidation Penalty.

Hence, if your CDP gets Liquidation, you do not have to return your borrowed TAI.

My TAI outstanding debt exceeds my TAI balance. What should I do?

TAI will soon be listed on DEXes. You can always buy TAI easily to pay down the debt or payback entirely.

Why the REQUEST WITHDRAWAL button is disabled?

If the REQUEST WITHDRAWAL button on your CDP Management page is disabled, you may run into either of the below scenarios:

  • You have not finished the last Withdraw action.

  • Your deposit is at the lowest deposit allowed in CDP: 200 TOMO. This means you are not allowed to withdraw any TOMO in order to ensure that your CDP remains at least 200 TOMO.

How to withdraw locked 200 TOMO remaining in your CDP?

The reason why you cannot withdraw 200 TOMO locked or the "REQUEST WITHDRAWAL" button is disabled is that your CDP needs to remain at a minimum 200TOMO.

In order to withdraw this amount, you need to payback all the TAI + Interests.

Here is an example:

Regarding the screenshot, if you want to withdraw 200TOMO locked, you have to payback 0.00397326 TAI remaining.

If you do not have enough TAI, you are advised to purchase TAI on exchange DEX. For example, Luaswap or Pantograph DEX.

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