> For the complete documentation index, see [llms.txt](https://docs.qiro.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.qiro.fi/products/qiro-marketplace/securitisation/cashflow-waterfall/pro-rata-waterfall.md). # Pro-rata Waterfall ### **Pro-Rata Structure** In a **Pro-Rata** structure, both tranches share repayments more evenly. Senior still has priority on interest, but principal is allocated proportionally based on each tranche’s outstanding amount. #### **How It Works** When the pool receives a repayment: **Interest Distribution** 1. Senior overdue interest 2. Senior current interest 3. Junior overdue interest 4. Junior current interest 5. Remaining interest flows to EIS **Principal Distribution** * As long as the Senior tranche has outstanding principal, principal is shared **pro-rata** between Senior and Junior based on their remaining balances. * Once Senior is fully repaid, all principal flows to Junior. #### **In Simple Terms** * Interest still prioritises Senior first. * Principal is shared proportionally until the Senior tranche is paid off. * Junior receives principal earlier compared to Sequential, reducing their risk relative to that structure. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.qiro.fi/products/qiro-marketplace/securitisation/cashflow-waterfall/pro-rata-waterfall.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.