> For the complete documentation index, see [llms.txt](https://docs.3jane.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.3jane.xyz/levered-callable-capital-lcc/mechanism/flow-of-funds.md).

# Flow of Funds

Margin sits in the facility as a performance bond. Called capital never pools inside LCC.

### When a call is funded

```mermaid
flowchart LR
    S["Staker"] -->|"1: stakes margin"| V["LCC facility"]
    S -->|"2: funds call in USDC"| V
    V -->|"3: routes into"| U["USD3"]
    U -->|"4: capital deployed"| F["Fintech lender facilities"]
    U -->|"5: USD3, 35-day cooldown"| S
    classDef box fill:#ffffff,stroke:#0D28F5,color:#1a1a1a;
    class S,V,U,F box;
```

### When a call is missed

```mermaid
flowchart LR
    P["Slashed margin<br/>(auction pool)"] -->|"margin award"| BB["Backstop bidder"]
    P -->|"filled share's surplus,<br/>minus auction fee"| ST["Staker"]
    P -->|"auction fee + unfilled share"| T["Treasury"]
    BB -->|"funds the shortfall in USDC,<br/>receives USD3 in cooldown"| U["USD3"]
    classDef box fill:#ffffff,stroke:#0D28F5,color:#1a1a1a;
    classDef pink fill:#EE80E2,stroke:#EE80E2,color:#ffffff;
    class BB,ST,T,U box;
    class P pink;
```