Vault Lifecycle

Every Trilobyte vault goes through a series of phases that represent the state of the loan. Transitions between phases are triggered by on-chain actions — deposits, approvals, payments, or enforcement calls.

Phase Diagram

Phases at a Glance

Phase	Description	Who Acts
RaisingFunds	Vault is open for investor deposits — junior first, then senior once lock_junior is called	Manager, Investors
AwaitingApproval	Fully funded (both tranches at target), waiting for manager to approve and disburse	Pool Manager
Active	Loan is live — borrower makes payments through the waterfall, investors claim yield per tranche	Borrower, Investors, Manager
FullyRepaid	Both tranches' outstanding reached zero — investors claim remaining yield, borrower withdraws remaining cash. Terminal transition target via finalize.	Investors, Borrower
Cancelled	The vault never reached disbursement (funding or approval deadline missed) — manager collateral and any borrower pledge are released once, and each investor pulls their own claim_refund	Anyone, then each Investor
Finalized	Terminal state — reached from FullyRepaid, Defaulted, or Cancelled once all claims/refunds are settled	—
Renegotiation	Terms are being renegotiated (from Active only)	Pool Manager, Borrower
Defaulted	Borrower failed to repay within the grace period. Terminal (manager collateral is slashed, any borrower pledge seized, recovery distributed senior-first).	Anyone (trigger), then Investors

Transition Rules

• RaisingFunds → AwaitingApproval: Automatic once junior_raised + senior_raised == principal (both tranches at their targets)

• RaisingFunds → Cancelled: Funding deadline expired (permissionless call, check_funding_expiry)

• AwaitingApproval → Active: Manager calls approve_and_disburse (with a pledge id, if the vault requires borrower collateral)

• AwaitingApproval → Cancelled: Approval deadline expired (permissionless call, check_approval_expiry)

• Cancelled → Finalized: Every investor has pulled their own claim_refund; anyone then calls finalize()

• Active → FullyRepaid: Automatic when both outstanding_s and outstanding_j reach zero (investors claim remaining yield here; the borrower withdraws remaining cash pool)

• FullyRepaid → Finalized: Once every investor has claimed their tranche pool in full and the cash pool is empty, anyone calls finalize()

• Active → Renegotiation: Manager proposes new terms

• Active → Defaulted: Grace period expired after a missed payment (permissionless call; terminal)

• Renegotiation → Active: Manager and borrower both authorize approve_renegotiation (EMI recalculated) — or the manager rejects it, which restores Active

• Defaulted → Finalized: Once distribute_recovery has run and every tranche pool is fully claimed, anyone calls finalize()

(Defaulted, FullyRepaid, and Cancelled all resolve into Finalized — the only true terminal state — once every party has claimed. Renegotiation is only reachable from — and returns to — Active; a defaulted loan cannot be renegotiated because the manager's collateral has already been slashed.)

Explore each phase in detail using the sub-pages below.

As of September 2026.