> For the complete documentation index, see [llms.txt](https://docs.trilobyte.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.trilobyte.finance/protocol-mechanics/vault-lifecycle/raising-funds.md).

# RaisingFunds

The **RaisingFunds** phase is the initial state of every vault. During this phase, the vault is open for investor deposits.

## What Happens

* Investors call `deposit(investor, amount)` to fund the vault
* For each deposit, 1:1 **SEP-41 debt tokens** (tVLT) are minted to the investor
* A **0.5% protocol fee** is deducted from each deposit and sent to the treasury
* The vault tracks each investor's deposit amount and adds them to the investor list
* In **permissioned vaults**, only allowlisted addresses can deposit

## Key Rules

* Individual deposits can be any amount, but the total cannot exceed the principal
* Investors can **withdraw** their deposit at any time during this phase (debt tokens are burned)
* The phase transitions automatically to **AwaitingApproval** when total deposits equal the principal

## Funding Deadline

If the vault was created with a `funding_deadline`, the vault can be cancelled if it fails to raise the full principal by the deadline.

* Anyone can call `check_funding_expiry()` after the deadline passes
* All investor deposits are refunded
* The manager's locked collateral is released
* The vault transitions directly to **Finalized**

{% hint style="warning" %}
If no funding deadline is set (`funding_deadline = 0`), the vault remains in RaisingFunds indefinitely until fully funded.
{% endhint %}

## Relevant Functions

| Function                             | Caller   | Description                                     |
| ------------------------------------ | -------- | ----------------------------------------------- |
| `deposit(investor, amount)`          | Investor | Deposit funds and mint debt tokens              |
| `withdraw(investor, amount)`         | Investor | Withdraw deposit and burn debt tokens           |
| `check_funding_expiry()`             | Anyone   | Cancel vault if funding deadline passed         |
| `add_to_allowlist(caller, investor)` | Manager  | Add investor to allowlist (permissioned vaults) |