The Approval phase

This is the second phase of the Borrower's Vault. Once Investors have fully funded, the Vault automatically transitions to the Approval phase. During this phase the following happens:

• Until approval of the loan by the Borrower, Investors may withdraw their funds by returning their Vault Tokens to the Vault. Investors do not receive interest in this case.

• The Borrower can approve the loan. Approval of the loan is always initiated by the Borrower and is never an automatic process.

• Approval of the loan will initiate the Lending Phase.