> ## Documentation Index
> Fetch the complete documentation index at: https://docs.mansa.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Core Concepts

### Onboarding

All borrowers must be onboarded before they can access liquidity. Onboarding ensures regulatory compliance through KYC/KYB checks and establishes the borrower profile within the Mansa platform.

**Who qualifies**

* Licensed money transmitters
* Banks with cross-border services
* Fintechs with payment licenses
* Established remittance providers

**Requirements**

* Valid payment licenses
* AML/KYC compliance program
* API readiness for integration
* Sufficient financial stability

### **Loan**

A **Loan** represents a credit line extended to a borrower. Loans are the central financing object and define how much liquidity can be accessed, on what terms, and under what repayment schedule.

**Key Attributes**:

* Loan amount / credit limit
* Tenor (e.g., daily, weekly cycle)
* Interest or fees
* Status: `pending`, `approved`, `active`, `paid`, `defaulted`

Borrowers cannot access funds until a loan is created and approved.

### Request

A Request is the borrower’s initiation of a new loan through the Mansa API. It defines how much liquidity is needed, the corridor where it will be used, and the desired tenor.

**Lifecycle**

1. **Creation** – Borrower  submits a `/request` with loan amount, corridor, and tenor.
2. **Validation** – Mansa evaluates the request against credit limits, compliance rules, and utilization history.
3. **Decision** – If approved, the request transitions into a **Loan** object. If it exceeds limits, it is flagged for admin review.
4. **Next Step** – Approved requests proceed directly to **Disbursement**.

### **Disbursement**

**Disbursement** occurs when Mansa moves approved loan funds into a **Mansa-assigned wallet** controlled for the borrower. This ensures liquidity is available, traceable, and managed within the Mansa ecosystem before external withdrawals occur.

* **Purpose**:
  * Allocate funds to a secure wallet in the borrower’s name
  * Create a record of available balance tied to the loan
* **Status Examples**: `initiated`, `completed`, `failed`

### **Drawdown (Withdrawal)**

A **Drawdown** is when a borrower moves funds from their **assigned custodial wallet** (managed under Mansa) into their own **third-party wallet**. These third-party wallets exist only on the blockchain and are controlled directly by the borrower.

* **Attributes**:
  * Amount and currency
  * Destination account (must be whitelisted)
  * Status: `requested`, `processing`, `completed`, `failed`
* **API Flow**:
  1. Initiate drawdown request
  2. Whitelist checks
  3. Funds transferred externally
  4. Verify funds transfer status

### **Utilization**

Borrowers must demonstrate how withdrawn funds are used. This ensures transparency and compliance.

* **utilization Intent** – Evidence showing how the borrower plans to use the funds.
* **Proof of utilization** – Evidence that funds were applied to a valid transaction (e.g., PSP settlement record).
* **Proof of Payment** – Evidence of incoming fiat payment from the borrower’s customers, confirming ability to repay.

Mansa reviews utilization proofs to assess compliance and inform future credit availability.

### **Whitelist**

The **Whitelist** defines the set of approved destinations where funds can be withdrawn or paid out. This acts as a security and compliance control.

* **Examples of Whitelisted Entities**:
  * Bank accounts
  * PSP wallets
  * Merchant settlement accounts
* **API Flow**:
  1. Submit whitelist request
  2. Verification and approval
  3. Borrower can use whitelisted destination in drawdowns

### Repayments

Repayments are the settlement of outstanding loan obligations between the borrower and Mansa. They represent the return of principal (plus fees/interest where applicable) after funds have been utilized.

**Lifecycle**

1. **Schedule** – Repayment terms are set when the Loan is created (e.g., tenor-based, daily, or milestone-based).
2. **Trigger** – Repayments occur either automatically on the due date or earlier if initiated by the borrower via the API.
3. **Debit** – Funds are withdrawn from the borrower’s **assigned custodial wallet**.
4. **Confirmation** – A webhook event updates both Mansa and the borrower’s system, reconciling the repayment and restoring available credit.

## Disbursement vs. Drawdown

Although the two terms are often used interchangeably in financial services, within Mansa they mean different things. Understanding the distinction is key for both compliance and reconciliation.

### **Disbursement**

* **Definition:** The release of approved loan funds from Mansa to the borrower’s **assigned custodial wallet**
* **Purpose:** To make liquidity available and trackable under Mansa’s credit facility.
* **Control:** Funds remain in the assigned wallet until the borrower decides how to use them.
* **Compliance Role:** Disbursement ensures funds are moved into a monitored environment, simplifying regulatory oversight.

### **Drawdown**

* **Definition:** The actual movement of funds from the assigned custodial wallet to the borrower’s **operational wallet** (or directly into payment transactions).
* **Purpose:** To enable borrowers to use liquidity for specific corridors, payments, or settlement obligations.
* **Control:** Triggered by the borrower, subject to utilization reporting requirements.
* **Compliance Role:** Each drawdown requires proof of utilization, tying liquidity directly to real economic activity.