> ## 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.

# How it works

> Four steps, from sign-up to a higher limit.

<Steps>
  <Step title="Sign up and verify once">
    A passkey (fingerprint or Face ID) creates the account; there is no password and no seed phrase. An ID check binds one person to one account, so a defaulter cannot start over with a new one. See [Verify your identity](/guides/verify-identity).
  </Step>

  <Step title="Top up">
    Pay by card, online banking or QR, in ringgit or rupiah. The money becomes **collateral**, held as shares of a yield vault, so it grows while it sits there. See [Top up](/guides/top-up).
  </Step>

  <Step title="Spend or send">
    Draw against your limit, for example straight to your family's Matocard in Indonesia. Borrowing is **interest-free**. See [Send money home](/guides/send-money).
  </Step>

  <Step title="Settle on time, get more">
    Repay the whole amount before the due date. Each qualifying cycle raises your score, and a higher score needs less collateral per unit of credit, so your limit rises. See [Settle](/guides/settle).
  </Step>
</Steps>

## The numbers

With **150 AUSD** of collateral and no yield:

| Account | Score | Collateral ratio | Limit |
| - | - | - | - |
| New | 0 | 150.00% | **100.00 AUSD** |
| After one cycle, using 50% of the limit | 17 | 138.10% | **108.61 AUSD** |
| After three cycles at 80% | 55 | 111.50% | **134.52 AUSD** |

These figures come straight from the contract on Monad testnet. The formula is in [Credit score](/learn/credit-score).

## Who does what

| Part | Done by |
| - | - |
| Score, limit, due dates, defaults | The **contract** on Monad. Anyone can recompute them |
| Card and bank payments, payouts | Matocard's **payments service**, through Xendit |
| Identity checks | **Didit**; only a hash of the document goes onchain |
| Paying users' network fees | Matocard's **relayer** |
| History and the public record page | The **Envio indexer** |

The full picture is in [Architecture](/developers/architecture) and the [Trust model](/learn/trust-model).


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