> For the complete documentation index, see [llms.txt](https://docs.usegimbal.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usegimbal.app/mechanics/syndicates.md). # Syndicates and lender slices How several lenders fund one loan, what a slice token carries, and how payments, rollover proceeds and auction proceeds are divided across slices. Every Gimbal loan is a syndicate, even with one lender. A request is covered by one or more offers, each fill becomes a slice, and each slice keeps the APR its lender chose. Syndication is not a product on the side; it is how a loan is built. ## What a slice is Each fill inside `originate` writes a slice record and mints one token in `LenderSlice`, an ERC-721 called Gimbal Lender Slice (GSLC). Slice id and token id are the same number, and `SliceCreated` reports both. A lender whose two offers fill the same request holds two slices. The record holds the loan id (which fixes both tokens), the lender, the outstanding principal, the slice's own `aprBps`, the minimum interest owed however early the loan closes, interest booked and paid so far with its last accrual time, and the three flag bits from the offer: self-liquidate, no closed-market liquidation, park idle. Each slice accrues at its own rate, and every payout, repayment, rollover or auction, is worked out slice by slice. Policy caps a loan at 32 slices: repayment and liquidation walk the whole list, and an unbounded syndicate could outgrow a block. ## Moving a slice A slice token is transferable, but the recipient must pass the lender check on the role registry. The token contract then informs the desk, which repoints future payouts and emits `SliceTransferred`. That one rule allows loan positions to trade while eligibility holds. ## Why every loan is syndicated * **Small lenders, large loans.** Twenty lenders at 10,000 USDG apiece can cover a borrow of 200,000 USDG against tokenised NVDA. * **No single balance sheet.** Depth is set by the offers resting in the book, not by one large lender. * **No shared risk.** No pool and no shared bad-debt account. Whoever set 8.5% on a slice owns that slice, its interest and its shortfall, nothing beyond it. ## How money is divided Let the slice principals be (P\_1) to (P\_n), summing to (P). * Slice (i) accrues `elapsed × apr_i × P_i / 365 days`, linear and per second, floored at the minimum interest period's worth. * A repayment goes to interest first, then principal. The interest part is shared by each slice's portion of interest owed; the principal part by each slice's portion of principal outstanding, so a partial payment (R) takes (R \times P\_i / P) off slice (i). Each lender receives interest net of the protocol's interest share, plus principal. * When a rollover clears, outgoing slices are paid in full from the incoming funds and retired; incoming lenders get new slices. * Auction proceeds run down a waterfall: the keeper's penalty share, lender claims, the lenders' penalty share, the protocol's, and any surplus to the borrower with unsold collateral. Lenders share what reaches them by each slice's claim (principal plus interest owed) over total debt, so no slice gets more than its claim plus its penalty share. A shortfall stays on the slices that suffered it. The borrower's effective rate is the principal-weighted average of the slice rates. ## Whole or not at all Origination happens whole or not at all, and the offers must sum to the request exactly. Too little reverts with `UnderFilled`; an offer past full coverage reverts with `OverFilled`. When the book cannot cover a request, no loan is written; the borrower can shrink the principal or wait for more depth. Adding a slice to a loan already running is on the roadmap. ## Worked example: twenty lenders, one call A borrower asks for 200,000 USDG. The collateral is 2,500 NVDA tokens, worth about 441,000 USDG, so the LTV is 45.4%. The relayer lines up twenty standing offers, 10,000 USDG apiece, priced between 8.2% and 9.0%. A single `originate` then escrows the 2,500 NVDA, draws 10,000 USDG from every lender (from the Morpho vault where a lender parked capital), and mints twenty slice tokens. The borrower receives 199,500 USDG once the origination fee is taken. If the loan is repaid on day 30 and the blend is 8.6%, interest is roughly 1,414 USDG, divided among the twenty slices by principal and by each slice's own APR, and the protocol keeps a 10% interest share. ## Next: senior and junior slices The next protocol release adds tranching inside a syndicate, following Centrifuge's DROP/TIN pattern. A lender electing the junior slice takes the first loss when an auction falls short, and is paid a higher rate in return; senior slices are paid ahead. The election is per offer, so a lender who never makes it sees no difference. The waterfall will be audited separately before it is switched on. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. 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