> 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/user-guides/for-borrowers.md).

# For Borrowers

This guide explains how businesses interact with Trilobyte to obtain and repay loans.

## Getting a Loan

### 1. Find a Pool Manager

Borrowers work with an approved **Pool Manager** who will:

* Evaluate your business and cash flows
* Perform due diligence and risk assessment
* Structure the loan terms (principal, rate, term, split ratio)
* Create the vault on your behalf

{% hint style="info" %}
Loan terms are negotiated **off-chain** between you and the Pool Manager. The agreed terms are then encoded into a Vault smart contract.
{% endhint %}

### 2. Wait for Funding

Once the vault is created, it enters the **RaisingFunds** phase. Investors deposit funds until the full principal is raised. You don't need to do anything during this phase.

### 3. Receive Disbursement

When the vault is fully funded, the Pool Manager approves and disburses the loan. The full principal amount is transferred directly to your wallet address.

## Making Repayments

Once your loan is active, you make periodic repayments:

* Payments are due every **30 days**
* The payment amount is the calculated **EMI** (Equated Monthly Instalment) — a fixed amount covering principal and interest
* Anyone can submit a payment on your behalf via `receive_payment(payer, amount)`

### What happens to each payment

1. Your payment is **split** by the vault's **split ratio**:
   * **EMI pool** (e.g. 80%) → available for investors to claim as yield
   * **Cash pool** (e.g. 20%) → available for you to withdraw
2. The **0.5% protocol fee** is then taken from **your cash share** (never the investor/EMI share) and sent to the treasury.

{% hint style="info" %}
Because only the EMI share counts toward repaying the loan, the amount due each period is **grossed up** so that `split_ratio%` of it equals one full investor instalment. The app shows you the exact amount to pay.
{% endhint %}

### Staying on schedule

* Make payments **before the due date** to avoid late fees
* If you miss a payment, the Pool Manager can apply an **18% p.a. late fee**
* After the **grace period** (default 30 days), anyone can trigger **default**

{% hint style="danger" %}
Default has serious consequences — the Pool Manager's collateral is slashed and the vault enters a distressed state. Always communicate with your Pool Manager if you're having difficulty making payments.
{% endhint %}

## Withdrawing from the Cash Pool

During the **Active** and **FullyRepaid** phases, you can withdraw your portion of repayments from the cash pool:

* Call `withdraw_cash(amount)` to withdraw available funds
* The cash pool balance is your share of incoming repayments (based on the split ratio)
* You can withdraw any amount up to the current cash pool balance

## Renegotiation

If your circumstances change and you need adjusted terms, work with your Pool Manager:

* The manager can propose **new interest rate and/or loan term**
* If approved, the EMI is recalculated on the **remaining outstanding principal**
* Payment tracking resets with the new schedule
* This can be done from both the Active and Defaulted phases

## Loan Completion

When all EMI payments are made:

1. The vault transitions to **FullyRepaid**
2. You can withdraw any remaining funds from the cash pool
3. The vault eventually moves to **Finalized** (terminal state)

## Key Functions

| Function                         | Description                          |
| -------------------------------- | ------------------------------------ |
| `receive_payment(payer, amount)` | Make a loan repayment                |
| `withdraw_cash(amount)`          | Withdraw from the cash pool          |
| `get_config()`                   | View vault terms and current phase   |
| `get_outstanding()`              | Check remaining principal            |
| `get_next_due()`                 | See next payment due date            |
| `get_emi()`                      | View the EMI amount                  |
| `get_cash_pool()`                | Check available cash pool balance    |
| `get_payments_made()`            | See how many payments have been made |