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

# Borrowing

> How to apply for a revenue-backed credit line, draw down funds, and manage your loan on Leviathan.

> **CONFIDENTIAL & PROPRIETARY © 2026 Inkwell Finance, Inc. All Rights Reserved.**
>
> This document is for informational purposes only and does not constitute legal, tax, or investment advice, nor an offer to sell or a solicitation to buy any security or other financial instrument. Any examples, structures, or flows described here are design intent only and may change.

## Overview

Borrowing on Leviathan is **revenue-backed** — your on-chain track record and revenue sources determine your eligibility and terms, rather than traditional collateral. Loans are repaid automatically through RevenueSplitter contracts that capture a portion of your protocol's revenue at the source.

## How Borrowing Works

```mermaid theme={null}
graph LR
    A[Check Credit Score] --> B[Apply for Credit Line]
    B --> C[Review Terms]
    C --> D[Accept & Fund]
    D --> E[Draw Down Capital]
    E --> F[Operate & Generate Revenue]
    F --> G[Automated Repayment]
```

## Step-by-Step

<Steps>
  <Step title="Check Your Credit Score">
    Start by visiting the [Credit Reports](/leviathan/credit-line/credit-reports) page to view your on-chain credit score. Your score determines whether you're eligible to borrow and what terms you'll receive. If you don't have a score yet, the system will generate one based on your on-chain history.
  </Step>

  <Step title="Apply for a Credit Line">
    On the **Borrow** page, submit a credit line application specifying:

    * The amount of capital you're seeking
    * Your intended use of funds (which protocols and strategies)
    * The revenue sources that will service the debt
  </Step>

  <Step title="Review Your Terms">
    Based on your credit score and application, the protocol determines your loan terms:

    * **Interest rate** — determined by your credit tier and pool parameters
    * **Repayment cap** — the maximum total amount you'll repay (principal + interest)
    * **Term length** — the duration of the loan
    * **Policy parameters** — which destinations and operations your capital can access
  </Step>

  <Step title="Accept and Fund">
    Review and accept the terms. Once accepted, capital is drawn from the lending pool and deployed into a policy-gated dWallet — giving you operational access within the approved bounds.
  </Step>

  <Step title="Draw Down and Operate">
    Use session keys to operate within your policy sandbox — trading on approved venues, deploying to approved yield sources, or running your protocol. All actions are verified against your policy before execution.
  </Step>

  <Step title="Automated Repayment">
    As your operations generate revenue, RevenueSplitter contracts on EVM chains automatically route a portion to loan repayment. You can monitor repayment progress in real time on the Positions page.
  </Step>
</Steps>

## Credit Scoring and Eligibility

Your on-chain credit score (0–1000) determines your borrowing experience:

| Tier      | Score Range | Impact                                    |
| --------- | ----------- | ----------------------------------------- |
| Excellent | 800–1000    | Best rates, highest limits, longest terms |
| Good      | 600–799     | Competitive rates, standard limits        |
| Fair      | 400–599     | Conservative rates, reduced limits        |
| Poor      | 200–399     | Limited eligibility, restrictive terms    |
| Very Poor | 0–199       | May not qualify                           |

→ [Learn more about credit scoring](/leviathan/credit-line/credit-reports)

## Policy Limits

During the active phase of your loan, your capital operates within a **policy sandbox**:

* **Whitelisted destinations** — you can only interact with pre-approved contracts and addresses
* **Daily limits** — caps on transaction volume to prevent rapid capital extraction
* **Function-level controls** — specific functions on approved contracts may be restricted

These limits are set at loan origination and enforced automatically by the protocol. You can view your current policy parameters on the Positions page.

## Revenue-Backed Repayment

Loan repayment happens automatically through RevenueSplitter contracts:

* A portion of your protocol's revenue is directed to loan repayment at the smart contract level
* You retain the remainder for operations
* Repayment progress is tracked on-chain and visible in real time
* Once you reach your repayment cap, the loan completes and all restrictions are lifted

You can also make voluntary additional repayments to close your loan faster.

## Monitoring Your Loan

The **Positions** page provides real-time visibility into your active loans:

| Metric                  | Description                                           |
| ----------------------- | ----------------------------------------------------- |
| **Outstanding Balance** | Remaining amount to be repaid                         |
| **Repayment Progress**  | How much of the cap has been reached                  |
| **Health Factor**       | Overall loan health based on revenue performance      |
| **Policy Status**       | Current policy parameters and any active restrictions |
| **Revenue Rate**        | Recent revenue flow and projected repayment timeline  |

<Warning>
  **Borrower Responsibilities**

  Borrowing on Leviathan carries obligations. If revenue falls below expected levels, the protocol may trigger enforcement actions. Failure to meet repayment obligations can result in loan default, which affects your credit score and may result in loss of deployed capital. You should only borrow amounts that your revenue can reasonably support.
</Warning>