> ## 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.

# Guide for Lenders

> How to fund deals and earn returns through Inkwell Revenue Marketplace

> **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.

## The Leviathan Experience (Institutional Lenders)

**How any fund lends on Day 1:**

<Steps>
  <Step title="Receive term sheet">
    Leviathan sends a term sheet (PDF) with deal details
  </Step>

  <Step title="DocuSign + KYB">
    One-time entity KYB and DocuSign execution
  </Step>

  <Step title="Fund the loan">
    Two ways:

    * **USD wire** (TradFi)
    * **USDC transfer** (crypto-native)
  </Step>

  <Step title="Single line on statement">
    "Leviathan Revenue-Backed Loan – 16% fixed-cap" (bank or wallet)
  </Step>

  <Step title="Monthly P&I">
    Interest + principal returned in same format
  </Step>
</Steps>

**Zero friction. 100% on-chain audit trail from day one.**

<Note>
  **Current Traction & Launch Path (December 2025)**

  * ✅ **Technology Validation:** Architecture proven on testnet with Ika ecosystem partner; utilizing Ika's EdDSA upgrade for native BTC enforcement (no bridge)
  * ✅ **Primary Pilot Partner:** Full Sail (Sui-native DEX) — MOU and LOI signed
  * 🔄 **Active Pipeline:** Multiple mainnet protocols in active term-sheet and LOI discussions
  * ⏭️ **Q2 2026:** First funded loans via parallel SPV (\$5-10M, 12-15% preferred return)
</Note>

***

## Getting Started (Crypto-Native Lenders)

Welcome! This guide walks you through how to fund revenue-based loans and earn returns through the Leviathan platform.

## Why Lend on Leviathan?

<CardGroup cols={2}>
  <Card title="Fixed-Cap Returns" icon="chart-line">
    Earn returns from debt obligations with clear maximum repayment caps. No equity risk, no perpetual exposure.
  </Card>

  <Card title="Transparent Tracking" icon="eye">
    All loan state, cash flows, and repayments are tracked on-chain. Real-time visibility into your positions.
  </Card>

  <Card title="Diversification" icon="layer-group">
    Fund multiple deals across different industries, risk levels, and loan sizes to build a diversified portfolio.
  </Card>

  <Card title="Liquidity Options" icon="arrows-rotate">
    Secondary marketplace (coming soon) allows you to sell positions to other accredited investors.
  </Card>
</CardGroup>

## Eligibility Requirements

<Warning>
  **Accredited Investors Only**

  To maintain compliance, Inkwell restricts lending to:

  * Accredited investors (US)
  * Qualified institutional investors
  * Institutional capital providers

  You'll need to verify your accreditation status before funding deals.
</Warning>

**Who qualifies as an accredited investor?**

In the US, you qualify if you meet any of these criteria:

* Income over \$200k/year (individual) or \$300k/year (joint) for the past 2 years
* Net worth over \$1M (excluding primary residence)
* Professional certifications (Series 7, 65, or 82 licenses)
* Entity with assets over \$5M

Check with your legal advisor for your specific jurisdiction.

## Step-by-Step Guide

### 1. Verify Your Accreditation

Before you can fund deals:

1. **Connect your wallet** to the Inkwell platform
2. **Complete accreditation verification** via our partner
3. **Receive on-chain attestation** (EAS/Verite/SBT)
4. **Start browsing deals**

<Tip>
  Accreditation verification typically takes 1-2 business days.
</Tip>

### 2. Browse Available Deals

Once verified, you can browse loan requests:

**Filter by:**

* Industry/vertical (DeFi, NFT, SaaS, e-commerce, etc.)
* Loan size (principal amount)
* Repayment cap (1.2x, 1.3x, 1.5x, etc.)
* Term length (12, 18, 24 months)
* Risk level (secured vs. unsecured)
* Revenue type (on-chain vs. off-chain)

**Review:**

* Borrower's revenue history
* Use of funds
* Collateral (if any)
* Payment schedule
* Total funding needed

### 3. Evaluate Risk & Returns

For each deal, consider:

**Revenue Quality:**

* Is revenue growing, stable, or declining?
* Is it recurring or one-time?
* Is it on-chain (verifiable) or off-chain (attestation-based)?

**Loan Terms:**

* What's the repayment cap? (1.2x = lower return, 1.5x = higher return)
* What's the expected term? (shorter = faster return of capital)
* What percentage of revenue goes to repayment?

**Security:**

* Is there collateral? What type and how much?
* Is it a secured or unsecured loan?
* Are there other lenders (syndicated) or just you?

**Expected Returns:**

* Calculate your expected IRR based on revenue projections
* Consider downside scenarios (what if revenue drops 50%?)
* Factor in default risk

<Note>
  **Example Return Calculation**

  Deal: \$100k principal, 1.3x cap, 5% monthly revenue share

  **Best case** (revenue grows):

  * Borrower pays \$5k/month (from \$100k revenue)
  * Loan paid off in 26 months
  * Your return: \$30k on \$100k = **30% total, \~13% IRR**

  **Base case** (revenue stable):

  * Borrower pays \$2.5k/month (from \$50k revenue)
  * Loan paid off in 52 months
  * Your return: \$30k on \$100k = **30% total, \~6% IRR**

  **Downside** (revenue drops 50%):

  * Borrower pays \$1.25k/month (from \$25k revenue)
  * Loan paid off in 104 months (8.7 years)
  * Your return: \$30k on \$100k = **30% total, \~3% IRR**
</Note>

### 4. Fund a Deal

Once you've chosen a deal:

**Full Funding (Bilateral):**

* Fund the entire principal amount yourself
* Receive 100% of repayments
* Simpler structure

**Partial Funding (Syndicated):**

* Fund a portion of the principal (e.g., \$25k of \$100k)
* Share repayments pro-rata with other lenders
* Diversify across more deals with less capital

**Commit your capital:**

1. Choose your funding amount
2. Approve the transaction in your wallet
3. Funds are escrowed in the protocol
4. Wait for deal to reach minimum funding threshold

### 5. Receive Repayments

Once the deal is funded and closed:

**On-Chain Loans:**

* Borrower's revenue is secured using Ika's 2PC-MPC infrastructure
* **Zero-Trust Non-Custody:** No single party has unilateral control over funds
* On default, automated enforcement ensures lender protection
* Repayments flow automatically to your wallet
* Much lower default rates (under 2% vs. 8-15% traditional)

**Off-Chain Loans (Monthly):**

* Borrower makes monthly payments
* Funds distributed to lenders automatically
* Track total repaid on-chain

**Track your position:**

* Total repaid so far
* Remaining balance to reach cap
* Current IRR
* Payment history

### 6. Loan Completion or Exit

**When the loan completes:**

* Borrower hits the repayment cap
* You receive your principal + return
* Position is marked as fully repaid
* No further obligations

**Or exit early (Phase 1+):**

* Sell your position on the secondary marketplace
* Only to other accredited investors
* Get liquidity before loan completes

## Risk Management

<AccordionGroup>
  <Accordion title="Diversify across multiple deals">
    Don't put all your capital in one deal. Spread across:

    * Different industries (DeFi, SaaS, NFT, etc.)
    * Different risk levels (secured vs. unsecured)
    * Different loan sizes
    * Different repayment caps

    **Example:** Instead of \$100k in one deal, fund 10 deals at \$10k each.
  </Accordion>

  <Accordion title="Prefer secured loans for lower risk">
    Loans with on-chain collateral have:

    * Lower default risk
    * Downside protection if borrower can't repay
    * Collateral can be liquidated to recover capital

    Trade-off: Lower returns than unsecured loans.
  </Accordion>

  <Accordion title="Favor on-chain revenue for transparency">
    On-chain revenue is:

    * Publicly verifiable on the blockchain
    * Harder to fake or manipulate
    * Automatically enforced via streaming
    * Lower default rates (under 2% vs. 8-15%)

    Off-chain revenue requires trust in attestations.
  </Accordion>

  <Accordion title="Monitor your positions regularly">
    Check your positions weekly or monthly:

    * Is the borrower making payments on time?
    * Is revenue growing, stable, or declining?
    * Are there any red flags?

    Early detection of issues allows for proactive restructuring.
  </Accordion>

  <Accordion title="Understand downside scenarios">
    Before funding, ask:

    * What if revenue drops 50%? 75%?
    * How long would it take to get repaid?
    * What's my worst-case IRR?

    Only fund deals where you're comfortable with the downside.
  </Accordion>
</AccordionGroup>

## Advanced Strategies

<AccordionGroup>
  <Accordion title="Build a tranched portfolio">
    Once tranched deals are available (Phase 1), you can:

    * **Senior tranches:** Lower risk, lower return, paid first
    * **Junior tranches:** Higher risk, higher return, paid last

    Mix senior and junior positions to balance risk/return.
  </Accordion>

  <Accordion title="Use secondary market for liquidity">
    When the secondary marketplace launches (Phase 1):

    * Sell positions that are underperforming
    * Buy discounted positions from other lenders
    * Rebalance your portfolio without waiting for loan completion
  </Accordion>

  <Accordion title="Co-invest with other institutions">
    For large deals, syndicate with other lenders:

    * Share due diligence costs
    * Reduce concentration risk
    * Access larger deals than you could fund alone
  </Accordion>
</AccordionGroup>

## Common Questions

<AccordionGroup>
  <Accordion title="What if the borrower defaults?">
    Default handling depends on the loan structure:

    * **Secured loans:** Collateral is liquidated to repay lenders
    * **Syndicated loans:** All lenders share losses pro-rata
    * **Unsecured loans:** May pursue restructuring or workout

    The protocol facilitates lender coordination and enforcement.
  </Accordion>

  <Accordion title="Can I sell my position?">
    **Phase 0:** No secondary trading yet

    **Phase 1+:** Yes, but only to other accredited investors via:

    * Whitelisted transfers
    * Private order book
    * Permissioned AMM (for senior tranches)
  </Accordion>

  <Accordion title="How are taxes handled?">
    Returns are generally taxable as interest income. Tax treatment varies by jurisdiction.

    The protocol provides transaction history for tax reporting, but you should consult your tax advisor.
  </Accordion>

  <Accordion title="What's the minimum investment?">
    Minimum investment varies by deal, but typically:

    * **Bilateral deals:** Full principal amount (e.g., \$100k)
    * **Syndicated deals:** As low as \$10k-\$25k per deal

    Check each deal for specific minimums.
  </Accordion>
</AccordionGroup>

## Ready to Start Lending?

<Card title="Browse Deals" icon="magnifying-glass" href="https://app.inkwell.finance/revenue-marketplace">
  Connect your wallet and start browsing available loan requests
</Card>

## Need Help?

* **Institutional Overview:** [Market analysis and strategy](/leviathan/revenue-marketplace/institutional)
* **FAQ:** [Common questions](/leviathan/revenue-marketplace/faq)
* **Discord:** [Join our community](https://discord.gg/ggGfKnDwXQ)
* **Email:** [partnerships@inkwell.finance](mailto:partnerships@inkwell.finance) (for institutional inquiries)