> For the complete documentation index, see [llms.txt](https://qiro.gitbook.io/qiro-vaults/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://qiro.gitbook.io/qiro-vaults/about-us/capital-protection.md).

# Capital Protection

The safeguards behind every Qiro facility: how borrowers are selected, and how each facility is documented and secured.

Capital in a Qiro vault is protected in two layers. **Selection** decides which borrowers ever receive capital. **Deal structure** governs how each facility is documented and secured.

## Selection

### Underwriting

No capital reaches a borrower who has not been through a full institutional credit process: financial analysis, business plan review, management interviews, proprietary credit scoring, an internal rating, and a Credit Assessment Memo documenting the decision and the basis for it. Over **$50M** has been underwritten to date.

Bright-line exclusions are applied before any analysis begins, covering operating history, licensing, geography, and credit type. A borrower who fails one is not underwritten. The gates are listed on [Borrowers](/qiro-vaults/stakeholders/borrowers.md), the full process on [Risk Curator](/qiro-vaults/stakeholders/risk-curator.md).

## Deal structure

### Collateral

Facilities are secured against real underlying assets: traceable in-transit settlement flows for payment financing, and the borrower's own portfolio of retail and SME receivables for institutional credit. Security cover runs from 1.0x to 1.5x, so pledged collateral meets or exceeds the outstanding balance.

### Bankruptcy-remote SPV structure

Lending is facilitated through Special Purpose Vehicles established for each borrower relationship. The SPV is the legal lender, isolating investor capital from the borrower's insolvency and from the curator's own operational risk.

### Covenants

Each facility carries covenants the borrower must meet while it is outstanding. Compliance is monitored for the life of the facility, and a breach gives the curator the right to trigger early repayment or enforcement before a default.

***

For what can go wrong across credit, liquidity, smart contract, and regulatory risk, see [Risks](/qiro-vaults/legal-disclosure/risks.md).