> 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/sequential-waterfall.md).

# Sequential Waterfall

### **1. Sequential Structure**

In a **Sequential** (or “waterfall”) structure, Senior investors are paid first. Junior investors receive repayments only after all Senior obligations are fully cleared.

#### **How It Works**

When the pool receives a repayment:

**Interest Distribution**

1. Outstanding **Senior overdue interest** is paid first.
2. Then **current Senior interest** is paid.
3. Any remaining interest goes to the **Excess Interest Spread (EIS)**.
4. Only after the Senior tranche is fully repaid (no outstanding principal) does interest start flowing to Junior:
   * Junior overdue interest
   * Junior current interest

**Principal Distribution**

1. All principal first repays:
   * Senior overdue principal
   * Senior current principal
2. After the Senior tranche is fully repaid, principal flows to:
   * Junior overdue principal
   * Junior current principal

#### **In Simple Terms**

* Senior investors get repaid first—both interest and principal.
* Junior begins receiving principal only after Senior is completely paid down.
* This structure provides **maximum protection** to Senior investors.


---

# 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/sequential-waterfall.md?ask=<question>&goal=<endgoal>
```

`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.