# 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

```
RaisingFunds → AwaitingApproval → Active → FullyRepaid → Finalized
                                    ↕           ↗
                               Renegotiation
                                    ↕           ↘
                                 Defaulted
```

## Phases at a Glance

| Phase                | Description                                                   | Who Acts                            |
| -------------------- | ------------------------------------------------------------- | ----------------------------------- |
| **RaisingFunds**     | Vault is open for investor deposits                           | Investors                           |
| **AwaitingApproval** | Fully funded, waiting for manager to approve and disburse     | Pool Manager                        |
| **Active**           | Loan is live — borrower makes payments, investors claim yield | Borrower, Investors, Manager        |
| **FullyRepaid**      | All payments received — investors claim remaining yield       | Investors, Borrower                 |
| **Finalized**        | Terminal state — vault is closed                              | —                                   |
| **Renegotiation**    | Terms are being renegotiated (from Active or Defaulted)       | Pool Manager                        |
| **Defaulted**        | Borrower failed to repay within the grace period              | Anyone (trigger), Manager (resolve) |

## Transition Rules

* **RaisingFunds → AwaitingApproval**: Automatic when total deposits equal the principal
* **RaisingFunds → Finalized**: Funding deadline expired (permissionless call)
* **AwaitingApproval → Active**: Manager calls `approve_and_disburse`
* **AwaitingApproval → Finalized**: Approval deadline expired (permissionless call)
* **Active → FullyRepaid**: Automatic when all payments are made
* **Active → Renegotiation**: Manager proposes new terms
* **Active → Defaulted**: Grace period expired after missed payment (permissionless call)
* **Defaulted → Renegotiation**: Manager proposes new terms
* **Renegotiation → Active**: Manager approves the proposal (EMI recalculated)
* **Renegotiation → previous phase**: Manager rejects the proposal (restores Active or Defaulted)
* **FullyRepaid → Finalized**: All claims settled

{% hint style="info" %}
Explore each phase in detail using the sub-pages below.
{% endhint %}


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