# Smart Contracts

**Megaloandon** is built on a robust set of smart contracts, designed to securely manage NFT collateral, loans, and auctions. Key components include:

* **Lending Contracts**: Relating to lending and borrowing operations, for lenders and borrower
* **Exchange Contracts**: A marketplace connects buyers, sellers and includes unique features like down payment and collateral listing.
* **Auction Contracts**: Automate the auction process if a borrower's health factor drops below 1, ensuring transparency and fairness in liquidation events.
* **Oracle Contracts**: Oracle contracts gather data from various NFT marketplaces and use algorithms to calculate a final price for NFTs, ensuring objectivity and fairness