Skip to main content
Once a facility is open and funded, the borrower draws capital through its vault. The borrower is responsible for returning funds to meet lender withdrawals, paying interest, and maintaining the first-loss buffer and the monitoring connection that its agreements require.

Before Vault Creation

Before your vault is created, you are onboarded under one of two paths, recorded in the Master Loan Agreement:
  1. Credora Path. Complete Credora underwriting. The composite grade sets your Collateral Percentage, and a grade below C does not qualify for a facility. You then maintain a data-sharing relationship with Credora for the life of the facility.
  2. Anchor Lender Path. Your own anchor lender has carried out its due diligence and agreed the Collateral Percentage with you directly. The due diligence documentation is shared with the platform as a condition of onboarding.
You also sign the Title Transfer Collateral Agreement and, before your first draw, register a drawdown account and a monitoring account with the platform. No first-loss buffer is transferred at signing or at vault creation. Before you can draw, you post the buffer that supports the amount you intend to draw, at your Collateral Percentage. The buffer then stays posted: you can repay and redraw against it without posting again, and you top it up only if you want to draw more than it supports or if a regrade raises the required percentage. See First-Loss Buffer. Approval to operate a facility does not guarantee that lenders will supply its full capacity.

Capacity and Available Borrowing

Capacity limits the total value of lender positions in the vault. It does not guarantee that lenders will fund that amount, and it is not the amount available to draw at a given time. Under the agreements, the facility size is itself set by reference to the buffer you post, or commit to post, at origination. The amount available to draw excludes cash reserved for funded withdrawals, matured withdrawal requests that have not yet been funded, and accrued protocol fees. Only the borrower’s registered wallet can draw, and funds are sent only to the borrower’s registered drawdown address. Every draw is also limited by the first-loss buffer. Under the agreements, no draw is processed beyond what the posted buffer supports. In the vault, draws are unavailable while the vault is delinquent, after termination, and while the withdrawal-side pause is active. A deposit pause alone does not stop draws. Under the Master Loan Agreement, draws are also blocked while the Solvency Ratio is in the Delinquent or Default state and following any Event of Default.

Interest

The vault accrues interest on lender capital from the moment it is deposited, including capital that has not been drawn. Borrowing cost therefore depends on the capital supplied to the facility, not only on the amount drawn. The Master Loan Agreement expresses interest by reference to drawn principal. The agreements provide that, where the on-chain parameters and an agreement differ, the on-chain parameters govern economic execution. Fee and Interest describes the rates and how they change.

Withdrawal Obligations

Lender withdrawal requests mature at epoch boundaries after a notice period. A request that has not matured does not reserve cash, but it signals an upcoming liquidity requirement. The notice period is the borrower’s window to return funds. At each boundary the vault must hold enough cash to fund all matured requests together. Assets held on an exchange count towards that requirement only once they have been returned to the vault. A shortfall makes the vault delinquent and is a repayment default under the Master Loan Agreement if it is not cured.

Repayments

A repayment returns the supported asset to the vault. Any wallet can repay on the borrower’s behalf. A repayment that leaves the vault with enough cash to cover all matured requests funds those requests in the same transaction. The drawn principal is not the full settlement amount. The amount owed also reflects accrued interest, reserved claims, fees, cash held in the vault, and recoveries already paid. The full-repayment action calculates the amount owed when the transaction executes and limits the transfer to that amount. It requires a sufficient token balance and allowance. Repayments must be made through the vault’s repay function. A plain token transfer to the vault address does not run a funding round or reduce the recorded drawn principal, and penalty interest can still be charged at the epoch boundary. A repayment does not, on its own, release any first-loss buffer. The buffer stays posted so that you can redraw against it without posting again. A top-up is needed only where a redraw would take drawn principal beyond what the posted buffer supports. To reduce the facility and have the excess buffer released, notify the reduction at or before the repayment through the platform’s reduction mechanism. The release then follows within the period set in the collateral agreement, and lenders are notified of the reduced facility. See First-Loss Buffer.

Maintain Monitoring and Respond to Notices

Keep your contact details current and respond to repayment and information requests within the periods the Master Loan Agreement allows. The agreement requires every borrower, whichever onboarding path applies, to provide and maintain a read-only API key to its monitoring account. A failure to maintain it is an Event of Default. Exchange balances do not become spendable vault cash until funds are actually returned. A healthy monitoring signal therefore does not replace the obligation to fund withdrawals on time.