> 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/how-it-works.md).

# How It Works

The full path your capital takes, from stablecoin deposit through underwritten credit facilities, back to redemption.

This page follows a single dollar through a Qiro vault: how it enters, where it goes, how it earns, and how it comes back. Each stage links to a deeper page.

### 1. Deposit

You deposit a stablecoin into the vault and receive **vault shares** in return. Deposits are synchronous: you call `deposit` and the shares are in your wallet in the same transaction.

Shares are a claim on a proportion of the vault, not on any specific loan. You are not picking deals; you are buying into a curated portfolio.

→ [Deposit](/qiro-vaults/stakeholders/investors/deposit.md)

### 2. Deploy

The vault's **Risk Curator** moves capital out of the vault and into a **Subaccount**.

The curator decides which approved borrower is funded, how much, and when capital is recalled. It does not decide who is approved: every borrower clears Qiro's credit process first.

A Subaccount is an isolated allocation unit. Its mandate is agreed with Qiro in advance — which facilities it may fund, how many, and in what proportions — and its accounting is kept separate from every other Subaccount.

Each Subaccount carries a hard cap on the cumulative capital it can draw from the vault.

→ [SubAccounts](/qiro-vaults/core-concepts/subaccounts.md)

### 3. Lend

For credit facilities, capital moves from the Subaccount into a **Deal SPV**, a bankruptcy-remote vehicle established for that borrower.

The SPV, not the curator, is the legal lender. The loan documentation, security package, and covenants sit at this layer.

→ [Capital Protection](/qiro-vaults/about-us/capital-protection.md)

### 4. Repay

Borrowers draw down, deploy the capital in their operations, and repay principal plus interest on schedule.

Repayments travel back the way they came — borrower to SPV, SPV to Subaccount, Subaccount to vault — where they land as idle stablecoins and raise the vault's assets.

→ [Yield Sources](/qiro-vaults/core-concepts/yield-sources.md)

### 5. Redeem

Redemption follows the ERC-7540 async pattern: **request → service → claim**.

**Request.** You submit a redemption request. Your shares are locked and you receive a request ID, placing you in a first-in-first-out queue.

**Service.** An operator services your request in queue order.

**Claim.** Once serviced, your assets are claimable and paid from the vault's cash balance to the receiver you specify.

Strict FIFO is deliberate. It prevents selective servicing, so no investor jumps the queue by size or relationship, and it makes exit order transparent and auditable.

Servicing runs against a soft target of **7 days**, set per vault. It is a commitment by the curator, not a timer enforced by the contracts, and actual speed follows the rate at which deployed capital is recycled.

→ [Redemptions](/qiro-vaults/stakeholders/investors/redemptions.md)

***

### Where to go next

| Section                                                                 | What it covers                                         |
| ----------------------------------------------------------------------- | ------------------------------------------------------ |
| [NAV & Valuation](/qiro-vaults/core-concepts/nav-and-valuation.md)      | What a share is worth, and who values deployed capital |
| [Fees](/qiro-vaults/core-concepts/fees.md)                              | What the vault charges, and how it is taken            |
| [Architecture Overview](/qiro-vaults/about-us/architecture-overview.md) | The same system viewed as four structural layers       |
| [Investors](/qiro-vaults/stakeholders/investors.md)                     | Depositing, redeeming, and tracking your position      |
| [Risk Curator](/qiro-vaults/stakeholders/risk-curator.md)               | The role, its powers, and who holds it                 |
| [Risks](/qiro-vaults/legal-disclosure/risks.md)                         | Credit, liquidity, smart contract, and regulatory risk |