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

# Lender pool

> Who funds the credit, what they earn, and what they risk.

Every draw is funded by an **ERC-4626 pool over AUSD** inside the credit line. Lenders deposit AUSD and receive pool shares.

## Accounting

```
totalAssets = idle AUSD + total drawn + value of seized collateral shares
```

* **Idle AUSD** is tracked internally, never read from the token balance, so a donation cannot move the share price.
* The pool uses OpenZeppelin's decimals offset against the first-depositor inflation attack.
* Lenders can withdraw only **idle** AUSD; money lent out comes back as borrowers repay.

## What lenders earn

The **yield fee**: 20% of the yield earned by every borrower's collateral. Borrowers pay no interest.

## What lenders risk

The collateral ratio crosses 100% at score **72**. Above it, a borrower's limit exceeds their collateral. If such a borrower defaults owing more than their collateral is worth, all of it is seized into the pool and the **shortfall is the pool's loss**.

Below score 72, a default is fully covered by the seized collateral, unless the vault has lost value since the draw.

| | Carried by |
| - | - |
| Shortfall on a default above score 72 | Lenders |
| Card chargebacks after the hold | The operator, not lenders |
| Vault losing value | Borrowers (lower limits) and lenders (seized shares worth less) |

On testnet, the pool was seeded with 90,000 AUSD from Agora's faucet.


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