# FAQ ### How is yield generated for lenders? Yield on Quantix Finance is generated through the deployment of capital into structured credit opportunities within the protocol. Unlike passive lending models, where funds remain largely idle or are overcollateralized, Quantix allocates capital into: * Institutional borrowing demand * Structured trading strategies * Market-neutral and yield-generating positions Borrowers access liquidity under predefined terms, including duration, cost of capital, and risk parameters. The yield paid by borrowers flows directly back to lenders within each pool. This creates a system where yield is a direct function of real capital utilization, rather than artificial incentives or inflationary emissions. ### How does Quantix manage risk? Risk management is embedded at both the pool level and the protocol level. Each lending pool operates with clearly defined parameters, including: * Borrower selection and segmentation * Collateral requirements (where applicable) * Allocation limits and exposure caps Quantix combines on-chain transparency with off-chain underwriting and monitoring, allowing for more advanced credit evaluation than purely algorithmic systems. Additional safeguards include: * Continuous monitoring of borrower positions * Dynamic adjustment of pool parameters * Diversification across multiple borrowers and strategies The objective is not to eliminate risk, but to price, manage, and distribute it effectively. ### Are loans overcollateralized or undercollateralized? Quantix supports a hybrid model. Certain pools operate with overcollateralized structures, particularly in open market environments where automated liquidation mechanisms are required. However, a core component of Quantix is enabling under-collateralized or structured credit, particularly within permissioned or institutionally managed pools. In these cases, lending decisions are based on: * Borrower credibility and track record * Strategy-level risk assessment * Structured agreements and repayment terms This allows for significantly improved capital efficiency compared to traditional DeFi lending models. ### How do withdrawals work? Withdrawals are dependent on the liquidity profile of each pool. Because capital within Quantix is actively deployed into borrower strategies, immediate withdrawal is not always guaranteed in the same way as idle liquidity pools. Instead, withdrawals are structured around: * Available liquidity within the pool * Repayment cycles of active loans * Liquidity buffers maintained for redemptions Lenders can submit withdrawal requests, which are processed based on these conditions. In many cases, partial liquidity may be available immediately, with the remainder fulfilled as capital is returned to the pool. This model ensures that capital remains productive while still allowing structured access to liquidity. ### What are QFI rewards and how are they distributed? QFI rewards are designed to incentivize long-term participation and align lenders with the growth of the Quantix ecosystem. Rewards are distributed based on a combination of: * Amount of capital supplied * Duration of participation * Allocation to priority or strategic pools These rewards are provided in addition to base yield, creating a dual return structure. QFI is not purely an incentive token—it is intended to play a broader role within the ecosystem, including governance, access to future products, and alignment with protocol expansion. ### Who can participate as a lender? Quantix supports both open participation and permissioned access, depending on the pool structure. Open pools are accessible to DeFi-native users who wish to supply capital and earn yield. Permissioned pools are designed for institutional participants and may require: * KYC / onboarding processes * Minimum capital thresholds * Compliance alignment This dual framework allows Quantix to operate across both retail and institutional environments without compromising on structure or regulatory considerations. ### What makes Quantix different from other lending protocols? Quantix differs from traditional DeFi lending platforms by focusing on structured credit and capital efficiency, rather than purely overcollateralized, passive liquidity models. Key distinctions include: * Active capital deployment into real yield-generating strategies * Support for undercollateralized and institutionally structured lending * Integration of underwriting, monitoring, and risk segmentation * A dual framework supporting both permissioned and open markets Where many protocols optimize for simplicity, Quantix is designed to support more advanced financial use cases, bridging the gap between decentralized infrastructure and institutional-grade credit markets. ### Is capital always deployed, or can it remain idle? Capital supplied to Quantix is intended to be actively deployed into lending opportunities. However, short periods of idle capital may occur depending on: * Market demand for borrowing * Pool utilization levels * Timing between loan cycles Quantix is designed to optimize capital efficiency, meaning the system prioritizes deploying funds into yield-generating positions whenever possible. ### How transparent is the protocol? Quantix provides full on-chain transparency for: * Pool balances * Capital allocation * Borrower activity * Performance metrics In addition to on-chain data, Quantix supplements transparency with structured reporting and monthly updates, providing deeper insight into performance, risk, and protocol activity. This ensures lenders have both real-time visibility and contextual understanding of how their capital is being utilized. ### Is there risk of loss? Yes. As with any credit-based system, lending on Quantix involves risk. Risks may include: * Borrower default * Market volatility affecting strategies * Liquidity constraints within pools Quantix is designed to manage and mitigate these risks through structured allocation, monitoring systems, and diversified exposure. However, lenders should understand that yield is generated through real financial activity, and therefore carries associated risk. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://quantixfinance.gitbook.io/quantixfinance-docs/lenders/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.