# 2.4 Loan Flow

## 1. Pool Access

Borrower selects a TrustBridge pool via the frontend.

## 2. Collateral Submission

Borrower deposits XLM to meet collateral ratio. Verified via oracle.

## 3. Loan Disbursement

If conditions are met, Blend sends USDC directly to borrower.

## 4. Interest Accrual

Lenders start earning interest immediately. Rates depend on demand and utilization.

## 5. Repayment

Borrower repays loan (principal + interest). Collateral is released and TRBT score updated.

## 6. Default

If borrower fails:

* Collateral is liquidated
* Backstop covers remaining shortfall
* Risk level is updated
