> For the complete documentation index, see [llms.txt](https://docs.usefarlight.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usefarlight.com/guides/lenders.md).

# Lend USDG on your own terms

How a lender sets collateral, LTV, term and rate on Farlight, follows each slice, gets repaid and cancels offers.

A lender on Farlight runs a credit book, not a pool deposit. Collateral, LTV, term and rate are all yours to set. Every position is isolated, so the risk you carry is the risk you priced, and a bad loan elsewhere on the platform never reaches you.

## Who can lend

Lending is for professional clients: crypto credit funds, market makers, family offices and similar. Retail lending is enabled jurisdiction by jurisdiction where the rules allow. See [Jurisdictions](/compliance/jurisdictions.md).

## What you need

* A wallet on Robinhood Chain.
* USDG, either approved to `LoanDesk` (Permit2 also works) or held in the whitelisted Morpho vault with `parkIdle` on.
* A `LENDER_PROFESSIONAL` attestation.

## Two ways to offer

### Targeted offers

Open borrow requests can be filtered by collateral, tier, LTV, term and APR. Pick one and sign an offer against it in a single click. The signature is the offer; no gas is spent.

### Standing offers

A standing offer names one token or a whole tier and carries a principal range, an APR, a maximum LTV, a term and an expiry. It behaves like a limit order: borrowers fill against it over time until its capacity is used up or it expires. Standing offers are what keeps the book deep, and they are how professional lenders are expected to run.

## Offer flags

| Flag                        | Effect                                                                                                  |
| --------------------------- | ------------------------------------------------------------------------------------------------------- |
| `selfLiquidate`             | If the loan is liquidated, you take the collateral at the oracle price rather than USDG proceeds.       |
| `noClosedMarketLiquidation` | Your slice is never liquidated while the underlying market is closed. You carry the gap risk.           |
| `parkIdle`                  | USDG that has not been matched waits in the Morpho vault and is pulled out just in time at origination. |

## Following your slices

Each filled slice is minted to your wallet as a slice token. For every one of them the dashboard shows:

* principal, APR and interest accrued to date,
* the health factor of the loan, whether the collateral's market is open, and how fresh the oracle price is,
* maturity, and whether a rollover auction is running,
* the borrower's other slices and the composition of the syndicate.

## Payouts

* Full repayment: principal plus your slice's interest, net of the protocol's 10% share of interest, in the same transaction as the borrower's repayment.
* A partial repayment cuts your principal in proportion to your slice.
* Refinance: once the replacement syndicate clears, you are repaid principal plus accrued interest in full, unless you chose to accept the new rate and stay in.
* Liquidation: your pro rata share of the proceeds plus your share of the penalty, or the collateral itself if `selfLiquidate` was set.

## Rollover auctions

When a borrower opens a rollover auction on a loan you hold a slice of, the rate rises from the current blended APR towards a cap. Accept at any point on the way up, or hand acceptance to a keeper with a rate limit so that a rollover you would have taken is never missed.

## Cancelling offers

One on-chain call flips a nonce bit and cancels a single offer or a whole range. Offers also lapse on their own at the expiry you set.

## Fees

* 10% of the interest you earn, taken from your payout.
* 5% of idle-capital vault yield, once that fee is enabled through the timelock.

## Practical notes

* For more buffer than the protocol default, set `maxLtvBps` below the tier maximum.
* Add Tier C tokens deliberately, one at a time, after reading DEX depth and past auction results on Telemetry, the public risk page.
* Give standing offers realistic expiries. A 90-day offer at a rate the market has moved past will be filled at the worst possible moment.
* If you would be content holding the stock, set `selfLiquidate`. If you never want to be liquidated into a weekend book, set `noClosedMarketLiquidation` and price the gap risk into your rate.


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