Indentura credit lines are extended, when approved by community managed pools, from community managed pools to shark managed pools. Community managed pool LPs benefit from receiving a fixed yield above the prevailing yield of their pool for a portion of pool funds. Sharks benefit by having access to on-demand liquidity at a predictable financing cost. Sharks utilize the credit line to earn the spread between their fund deployment strategy and the cost of the credit line.

Credit Line Parameters

Community DAO pool members agree on pool parameters for the credit line. These parameters include:

• Portfolio Concentration Limit for the credit line - The maximum amount of the pool that can be deployed in the credit line
• Minimum shark pool contribution % - The minimum % of pool value that must come from shark funds
• Duration - The duration of the credit line before it is due for repayment
• *Interest Rate spread - *****The additional interest rate expressed as APR above the prevailing community DAO pool rate charged upon drawdown of the credit line

Requesting a Credit Line

Once credit line parameters are set, sharks can request a credit line offer. The Indentura platform calculates the offer which includes the following:

• Drawdown amount
• Repayment amount
• Due Date
• Interest Rate

Upon approving the offer, the request is in pending state until processed by the Agent.

Extending a Credit Line

Before the credit line due date, sharks may be able to extend all or a portion of the credit line. Sharks request a credit line extension offer and receive the following details:

• Drawdown amount
• Repayment amount
• Due Date
• Interest Rate