# What & Why fCash?

## Why fCash?

Notional Finance offers fixed-rate borrowing and lending services, which are designed to provide stability and certainty in the borrowing and lending process. One of the most common examples of a fixed-rate market is bonds, which represent a coupon for future cash flow and can be traded in secondary markets based on supply and demand forces.

The folks who issue the bonds always make sure their balance sheets are balanced with both assets and liabilities. Selling bonds bring in cash, which is recorded as an asset, and the obligation to pay back the principal amount plus interest, which is recorded as a liability.

To bring this into context, assume the issuer of the bond is a borrower, and the investor is a lender.

The issuer needs to buy back their issued bonds at a premium (principal + interest) to close the borrowing position. The investor needs to sell the bond to close their position

fCash represents and tracks the borrower's obligation and Lender's claim in a smart contract and facilitates the added utility for a lender to withdraw their Principal + Interest anytime and for a borrower to square off their loans anytime.

## What is fCash?

fCash lets you easily and safely agree to send or receive money on certain dates in the future. By trading fCash, you can move your money around in time as you wish. This gives you more options and possibilities for your financial plans on Ethereum.

Positive fCash acts as an asset and negative fCash acts as an obligation.

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Positive fCash is a coupon to claim the principal + interest and it is usually held by a lender (one who invests in the bonds).&#x20;
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{% hint style="info" %}
Negative fCash is an obligation to pay back to the lender (investor). It is usually held by a borrower.
{% endhint %}

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