> 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/vaults/credit-strategy.md). # Credit Strategy & the Curator The Credit Strategy is the vault's arm into the credit protocol: it proposes, holds, and manages Credit Positions in Secured Lines of Credit on behalf of vault depositors. ### The Curator (Manager) The **Manager** — the Vault Curator — directs vault capital: * Moves capital between the vault, the Credit Strategy, and the Liquid Strategy * Proposes and accepts Credit Positions on Lines of Credit (`addCredit`), on terms the Borrower must mutually consent to * Refinances positions (rates, deadlines, size) by mutual consent with the Borrower * Approves per-line spending allowances The vault can never lend to itself: proposing credit to a Line whose borrower is the vault or the strategy reverts. ### Position lifecycle in the vault * When a Line accepts the vault's credit proposal, the **Credit Position Token is minted directly to the Credit Strategy**, and the Line automatically calls back into the strategy to register the position — vault accounting picks it up atomically. * Interest accrues position-by-position and flows into vault total assets (and hence the share price) continuously. Positions on Lines that become INSOLVENT or ABORTED are automatically excluded from total assets — impairment is reflected in the share price without manual intervention. * Operators can withdraw repaid interest and undrawn deposit from positions back into the strategy, and apply a Line's Spigot Reserves to repayment (`useAndRepay`). ### Secondary sales of positions The Curator can sell a vault-held Credit Position for the vault's underlying asset by **mutual consent with the buyer** (`swapCreditPositionForTokens`): the position's ERC-721 transfers to the buyer's receiver, payment lands in the strategy, and vault accounting re-syncs. This is the onchain mechanism for LP syndication and portfolio management — positions can be distributed to other lenders without unwinding the underlying loan. ### Accounting integrity Anyone with the Operator role can trigger a **sync**: the strategy walks its position registry, drops any positions no longer owned by the vault, and accrues fees — keeping share pricing exact after transfers or sales. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation by asking a question. Perform an HTTP GET request on the following URL with the `ask` and `goal` query parameters: ``` GET https://docs.creditcoop.xyz/core-concepts/vaults/credit-strategy.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is what the user is ultimately trying to achieve, the reason they need the answer. Sharing it helps GitBook give you a better, more relevant answer. A goal is most helpful when it describes the outcome the user wants rather than restating the question. For example, with `ask=how do I create an API token`, a goal like `automate deployments from our CI pipeline` lets GitBook tailor the answer to that use case. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.