# Flash Loans

Flash Loans on XOXNO let users borrow tokens without providing any collateral. The catch? The borrowed amount, plus a small fee, must be repaid within the same blockchain transaction. If repayment doesn’t happen, the transaction is reversed, as though it never occurred.

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**How Flash Loans Work**

* Executed and settled within a **single block** on the **MultiversX blockchain**.
* All actions—borrowing, using funds, and repayment—happen **simultaneously**.
* The **receiver of the Flash Loan** must be a smart contract located on the **same shard** as XOXNO’s contract.

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**Advanced Use Cases**

1. **Arbitrage:**
   * Exploiting price differences across platforms for profit.
2. **Debt Optimization:**
   * Swapping or repaying loans efficiently in one transaction.
3. **Complex Strategies:**
   * Leveraging temporary liquidity for advanced DeFi operations.

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**Why Flash Loans Are Unique**

* **Risk-Free for the Protocol:**
  * The blockchain ensures repayment within the transaction, or the loan fails.
* **Technical Requirements:**
  * Flash Loans are typically used by **developers** or **experienced users** due to the complexity of implementation.


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