# FAQ

#### **How does Quantix differ from traditional DeFi lending protocols?**

Quantix departs from overcollateralized, passive liquidity models by introducing structured credit markets where capital is actively deployed into borrower strategies.

This enables:

* Higher capital efficiency
* More diverse lending opportunities
* Risk-adjusted return profiles aligned with institutional frameworks

#### **What level of transparency is provided to lenders?**

Quantix provides full on-chain transparency alongside structured reporting.

Lenders have visibility into:

* Capital allocation
* Pool performance
* Borrower exposure
* Risk metrics

This is supplemented by periodic reports that contextualize performance and highlight key developments.

#### **Is there risk of capital loss?**

Yes. Lending within Quantix involves exposure to credit, market, and liquidity risk.

While the protocol implements structured risk management and mitigation mechanisms, losses may occur in the event of borrower default or adverse market conditions.

#### **How is capital allocated across borrowers?**

Allocation is determined by pool mandates, risk parameters, and underwriting assessments.

Capital is diversified across multiple positions where possible, reducing concentration risk and improving portfolio stability.

#### **Who is eligible to participate in institutional pools?**

Institutional pools are permissioned and may require:

* Onboarding and verification
* Minimum capital commitments
* Compliance with regulatory standards

This ensures that participation aligns with the operational and governance requirements of the pool.