Line of Credit Features

There are two ways to secure a Line of Credit, which can be combined in a single facility:

Cash Flow / Revenue-Based Security

Facilitated by the Spigot, this approach escrows an agreed percentage of the Borrower's onchain cash flows at the source. Escrowed revenue repays the Line automatically and provides Trustless Recourse: if the Borrower defaults, the facility's share of revenue steps up programmatically.

Asset-Based Security

The Borrower deposits collateral into an Escrow contract attached to the Line. Supported collateral includes ERC-20 tokens, ERC-4626 vault tokens, and Uniswap V3 liquidity positions. Collateral is priced by oracle and a Collateral Ratio is maintained against the facility's total outstanding debt. If the ratio falls below the agreed minimum, the Line becomes eligible for liquidation.

Every facility also carries:

• Tokenized positions — each Credit Line is an ERC-721 Credit Position Token

• Per-position terms — each position has its own interest rates, deadline, and early withdrawal fee

• Mutual consent with replay protection — all term changes require both parties to sign identical terms against the facility's current nonce

• A defined role model — Borrower, Admin, and Servicer, described in Roles & Permissions