Docs · Loan lifecycle
Settlement at term
What happens at term, and how a shortfall is handled.
Every loan is terminal: at maturity it resolves, without exception. The borrower has three outcomes, and all three are final:
| Outcome | Effect |
|---|---|
| Repay | Debt is settled in quote; collateral returns to the borrower in full. |
| Roll | A new loan opens at the current book’s rate and term; the old one closes. Repricing is mandatory. |
| Default | Title passes to the funding lenders at their committed price — the same settlement as a persistent liquidation. |
Because terms are absolute, the book’s exposure has a known horizon: no position can outlive its market’s term, and lender capital is never locked indefinitely.