> 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/protocol-overview/system-objective.md).

# System Objective

Quantix exists to move underwritten credit onto public infrastructure without losing the protections that make credit lendable in the first place. Three properties define the system.

**Credit backed by both underwriting and collateral.** Loans are originated against a delegate's underwriting judgment and legal recourse, not against collateral alone — but every pool currently live on the protocol lends on a secured, overcollateralized basis against liquid digital assets, with collateral terms set at the individual loan level and monitored continuously. 

**Losses that fall in a known order.** Every pool has a defined loss waterfall: collateral is liquidated first, the delegate's first-loss capital absorbs the next tranche, and only losses beyond that reach lender principal. That order is fixed and disclosed before a lender ever commits capital — not something that gets renegotiated after a loss occurs.

**Evidence over assertion.** Pool value, deployed capital, available liquidity, coverage ratios, and default history are recorded on-chain so lenders, auditors, and integrators can independently verify the same numbers rather than relying on the protocol's own reporting. Credibility here is meant to rest on what can be checked, not on what's claimed.