> For the complete documentation index, see [llms.txt](https://quantixfinance.gitbook.io/quantixfinance-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quantixfinance.gitbook.io/quantixfinance-docs/capital-formation-and-products/revolving-and-term-structures.md).

# Revolving and Term Structures

Facilities take one of two shapes, and the difference isn't just administrative — it determines how a lender should read a pool's utilization and repayment behavior over time.

A **term** facility has a fixed principal and a fixed maturity. The borrower draws once, at closing, and repays either in scheduled installments (amortizing) or in a single payment at maturity (bullet). Because the draw happens once, a term facility's outstanding balance moves in a predictable direction — down, toward zero — and a lender evaluating pool health can reason about repayment timing with a fair degree of certainty. Term structures suit borrowers with a defined funding need and a known time horizon: financing a specific position, project, or transaction with a clear end date.

A **revolving** facility works like a credit line rather than a one-time loan. The borrower draws and repays against an approved limit as their needs change over the life of the facility, paying the cost of capital only on what's actually outstanding at any given time — not on the full approved limit. This means a revolving facility's balance can go up, down, or sit near zero for periods, all without that movement signaling anything unusual about the borrower's health; it reflects trading activity, not distress. Revolving structures suit trading firms and market makers whose working-capital needs move with market conditions and trading volume day to day, which is why they're common in the protocol's core pools rather than the exception.

The structure — revolving or term, and the specific drawdown, repayment, and (for term loans) amortization mechanics — is set during structuring and recorded on the loan itself, so it's fixed and visible before a lender commits, not something that shifts after the fact.