Loans on this platform are created using the create-loan function, which allows users to request a loan for a certain amount of assets or tokens. The loan request includes information such as the collateral ratio, the annual percent return (APR) in basis points, the length of the loan term, and the payment period. Once the loan is funded, the borrower can draw down on the loan by transferring assets or tokens from the loan to their own account. In some cases the borrower must also provide collateral to secure the loan, which is held in a coll-vault contract principal. If the borrower defaults on their loan payments, the lender can seize the collateral to cover the remaining balance of the loan. Lenders can lend out assets and tokens to borrowers, while earning a return on their investment through the APR on the loan.