> 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/credit-lifecycle/closing-and-conditions-precedent.md).

# Closing and Conditions Precedent

Between commitment and funding sit the conditions precedent — the items that must be true before capital moves. A commitment is not the same as a closing, and the space between the two exists specifically so that no facility can draw down on the strength of an agreement alone; it has to draw down on the strength of that agreement plus a set of verified facts.

These typically include a fully executed Master Loan Agreement, so the legal obligation exists in binding form before any funds are at risk; completed KYC and KYB, so the parties on both sides of the transaction have been verified rather than assumed; posted collateral where the facility requires it, confirmed on-chain rather than represented as pending; and any pool-level checks specific to that facility, such as available capacity in the pool and the delegate's first-loss balance actually being in place rather than just committed to in principle. Each condition exists to close a specific gap between what was agreed and what has actually been confirmed — the list is short, but each item on it corresponds to a real way a facility could otherwise go wrong before it even starts.

Closing is the point at which the off-chain agreement and the on-chain facility are bound together — the legal instrument and the smart contract stop being two separate representations of the deal and become a single, enforceable transaction. Only once every condition is satisfied does the facility become fundable; nothing in the structure allows funding to happen first and verification to follow.