Term Loans

First RWA lending application on Qiro Protocol

Term Loan Pools represent a straightforward lending structure where the borrower agrees to repay the loan over a fixed term. This product mirrors traditional loan agreements where repayment obligations are clearly defined in advance.

In these pools, the loan is issued for a specific duration, and the repayment schedule — including when and how much is to be paid — is set upfront. The investor's cashflows are based on this schedule, providing predictable and time-bound returns.

These are best suited for lending use cases with a clear repayment horizon and minimal variability in cash inflows, such as corporate working capital loans, invoice financing, or inventory-backed lending.

Key Features:

• Fixed Repayment Structure Borrowers repay over a defined period, and repayments can be structured in two formats:

  • Bullet Repayment: The borrower repays the entire principal in one go at the end of the loan term. Interest may be paid periodically or also at maturity.

  • Amortised Repayment: The principal is repaid in parts over time. The frequency (e.g., monthly, quarterly) and the start date of principal repayments can be configured at the pool level.

• Investor Simplicity These pools are typically uni-tranched, meaning all investors share the same risk and return. Tranching can be enabled if needed but is not the default setup.

• Support for Real-Life Scenarios The system automatically handles a variety of real-world events that may affect repayment and investor returns:

  • Late Payments: Tracked and included in the repayment flow.

  • Prepayments: Allows early principal repayments by the borrower.

  • Write-Offs: Supports partial or full write-offs in case of default.

  • Recoveries: Captures funds recovered post-default and allocates them fairly.