> For the complete documentation index, see [llms.txt](https://docs.creditcoop.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.creditcoop.xyz/core-concepts/secured-line-of-credit/secured-line-of-credit.md).
# 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](/core-concepts/the-spigot.md), 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](/core-concepts/secured-line-of-credit/secured-line-of-credit/credit-position-tokens.md)
* **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](/core-concepts/secured-line-of-credit/secured-line-of-credit/roles-and-permissions.md)
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