Credit Position Tokens

Every Credit Position in a Line of Credit is represented by an ERC-721 token — the Credit Position Token (CPT). The holder of the token is the Lender of record for that position: they receive the position's interest, can withdraw its available funds, and are the counterparty for refinancing proposals.

Why tokenized positions

• Position-level accounting. Deposit, principal, accrued and repaid interest, rates, deadline, and the facility's collateral ratio are all queryable per token.

• Transferability & syndication. Positions can change hands without touching the underlying loan — enabling secondary sales, syndication, and vault strategies that hold portfolios of positions.

• Composability. Vaults hold CPTs directly: when a Credit Coop Lending Vault lends to a Line, the position token is minted to the vault's Credit Strategy and its value flows into vault share pricing automatically.

Transfer rules

• Transfer-restricted positions. At creation, Borrower and Lender agree whether the position is restricted. A restricted position can only be transferred to an address the Borrower has explicitly approved, and each approval is consumed on transfer — the Borrower always knows and consents to who their lender is.

• No transfers with open proposals. A position token cannot be transferred while it has an open mutual-consent proposal, preventing consent from being traded out from under a counterparty.

Minting

Position tokens are minted only by genuine Line contracts deployed from supported Credit Coop factories — third-party contracts cannot mint CPTs.