> 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/participants-and-permissions/borrowers.md).

# Borrowers

Borrowers are professional counterparties: market makers, trading firms, funds, and platforms with the operating history to be underwritten. They are not anonymous wallets.

Before drawing capital, a borrower completes onboarding, passes KYC and KYB, is underwritten by the pool's delegate, and signs a Master Loan Agreement. Loan terms — principal, tenor, cost of capital, collateral, and covenants — are set during structuring and recorded on the loan. Over the life of a facility, borrowers meet reporting obligations, typically including monthly financials, and remain subject to the covenants in their agreement.

A borrower's standing is a function of underwriting and performance, not of collateral alone. Missed obligations, covenant breaches, and deteriorating financials are grounds for exception handling up to and including default, as described in Exceptions, Amendments, and Default.