Active

The Active phase is the core operating state of the vault. The loan has been disbursed to the borrower, and periodic repayments are expected.

What Happens

• The Borrower makes periodic repayments via receive_payment

• Each payment is split between the EMI pool (investor yield) and the Cash pool (borrower operating capital)

• Investors can claim their pro-rata share of accumulated yield at any time

• The Borrower can withdraw from the cash pool at any time

• The Pool Manager monitors repayment health and enforces late fees if necessary

Payment Processing

When a payment is received:

1. A 0.5% protocol fee is deducted and sent to the treasury

2. The remainder is split by the vault's split_ratio:

   • EMI pool portion (e.g. 80%) → available for investor claims

   • Cash pool portion (e.g. 20%) → available for borrower withdrawal

3. The outstanding principal is amortised (reduced by the principal component of the EMI)

4. The payment counter advances

5. The next due date is set to 30 days forward

6. The missed payments counter resets to 0

Yield Claims

Investors call claim_yield(investor) to claim their share of the EMI pool:

$$\text{claimable} = \frac{\text{balance}}{\text{total\_supply}} \times \text{emi\_pool} - \text{already\_claimed}$$

Claims are available during both the Active and FullyRepaid phases.

Cash Withdrawals

The borrower can call withdraw_cash(amount) to withdraw available funds from the cash pool. This represents the borrower's portion of incoming repayments that they can use for operations.

Transition Out

From Active, the vault can transition to:

• FullyRepaid — Automatically when all payments are made

• Renegotiation — When the manager proposes new terms

• Defaulted — When the grace period expires after a missed payment

Relevant Functions

Function	Caller	Description
receive_payment(payer, amount)	Anyone	Submit a repayment
claim_yield(investor)	Investor	Claim pro-rata EMI pool share
withdraw_cash(amount)	Borrower	Withdraw from cash pool
apply_late_fee(caller)	Manager	Apply late fee penalty
propose_renegotiation(caller, rate, term)	Manager	Propose new terms
check_default()	Anyone	Trigger default if grace period expired