# 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. --- # 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/quantix-institutional-for-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.