> ## Documentation Index
> Fetch the complete documentation index at: https://tetrafi.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Borrowing & Lending

> Repayments, interest, and margin calls between the same institutions settle net - with the most liquidity freed exactly when markets turn. Coming soon.

<Note>
  **Coming soon.** Borrowing & Lending opens to design partners first. Lane: **Future**. Paths, schemas, and parameters publish at launch.
</Note>

* **Payments run both ways** between the same institutions - repayments and interest one way, new draws the other, margin calls whenever prices move.
* **Each settles gross**, so each needs liquidity in place on the day it falls due.
* **The worst days cost the most** - the most falls due in volatile markets, when liquidity is scarcest.

## What Changes for You

* **Settle the book net.** A loan book is a netting set: repayments, draws, interest, and margin calls between the same participants clear on [one graph](/netting), and only each institution's residual is funded.
* **Liquidity freed when it is scarcest.** The gap between gross and net is widest in a high-volatility event, when gross settlement demands the most liquidity just as it is scarcest.
* **Your terms, unchanged.** Each obligation keeps its own due date as its deadline and clears in the run before it; nothing is novated, and every loan stays between the two parties who signed it.
* **The residual, handled.** Whatever doesn't net takes a priced backstop from [programmable collateral vaults](/collateral/vaults), with an early exit any time before the deadline - so the worst case is what you pay today.

## A Day of Flow

Three institutions, one settlement date, USDC on Base:

* The Fund owes the Bank **100** - a loan repayment
* The Bank owes the Desk **70** - a draw on a committed credit line
* The Desk owes the Fund **50** - interest on its credit line

Gross, that is 220 USDC across three payments. Netted, the loop of 50 cancels, and the rest settles along the original debts: the Fund pays the Bank 50, the Bank pays the Desk 20. **70 moves instead of 220.**

## How It Enters

Each repayment, draw, or margin call enters as a **signed debt** from the institution that owes it, or as a batch from the lending market that originated it, which each borrower approves line by line; from there it is the standard [integration](/netting-api/integration#submit-obligations).

<CardGroup cols={2}>
  <Card title="Integrate" icon="code" href="/netting-api/integration">
    Onboard, submit obligations, sign once, fund only your net.
  </Card>

  <Card title="Receivables & Trade Finance" icon="file-invoice" href="/netting/receivables-and-trade-finance">
    Dated obligation chains that mostly cancel.
  </Card>
</CardGroup>

Run a lending book that settles gross today? [Start the conversation](/support).


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