Deal Lifecycle

Complete journey of a credit facility on Port - from origination to repayment

This process is designed to ensure that every Market on the platform has been professionally underwritten, independently assessed, properly structured, and continuously monitored throughout its duration.

1

Origination

Deal flow enters the platform through Port's demand side partnerships (supply chain finance platforms, distributors, freight forwarders) and trading enterprise relationships. Each potential Market begins with a pre-qualification based on Port's credit policy. Port's integrations enable diversified deal sourcing across geographies, industries, and asset types.

Credit Risk AI Agent

Port's credit risk AI agent ingests pre-qualification questionnaire info and supporting documents like financial statements, bank statements, trade history, business model and publicly available information to evaluate the credit opportunity.

If qualified, facility type and potential structure is briefly discussed to align expectations.

2

Due Diligence & Risk Assessment

Every qualified deal undergoes rigorous underwriting and risk assessment. This includes credit analysis (obligor quality, historical performance, stress testing), operational due diligence (underwriting processes, financial health, servicing capability), third-party risk assessment producing a published risk score, and independent legal and structural review. The scope differs by counterparty type: originator Markets are evaluated on portfolio quality and servicing infrastructure, while trading enterprise Markets focus on financial strength, trade flow verification, and counterparty creditworthiness.

See Pre-Launch Due Diligence for the full evaluation methodology.

3

Structuring

After due diligence, the Market is structured with defined parameters: advance rates, concentration limits, covenants, tranche structure (including the counterparty's first-loss position), and insurance or credit enhancement where applicable. An SPV is established as a bankruptcy-remote entity to hold the underlying assets on behalf of investors.

See Structural Protections for details on how each parameter is calibrated and enforced, and Port Markets for facility-specific mechanics.

4

Tokenization & Launch

The structured Market is tokenized and made available on the Port platform. Each token represents a pro-rata claim on the underlying credit facility. These facility tokens are soulbound and non-transferrable. For now, investors allocate directly to individual Markets in the stablecoin specified by the facility.

Documentation Publication

The Market's credit memorandum, risk assessment, facility terms, and originator information are published in the data room, providing full transparency to prospective investors.

5

Deployment & Servicing

Once a Market is live and funded, the counterparty draws capital subject to advance rate calculations, concentration limit checks, and covenant compliance. Drawdowns are processed against verified receivables, invoices, or loan agreements.

Asset Servicing

The originator manages the day-to-day servicing of the underlying assets — processing collections, managing obligor relationships, handling disputes, and enforcing payment terms. For trading enterprises, Port services the credit facility.

Yield accrues to investor positions based on the discount rates and fee structures defined in the facility agreement.

6

Monitoring & Reporting

Throughout the facility's life, Port provides continuous portfolio surveillance, credit monitoring, and covenant compliance verification. Counterparties submit regular reports (or integrate via API), and key portfolio metrics are published on-chain for real-time investor visibility.

See Ongoing Monitoring for the full monitoring methodology, reporting cadence, and credit review process.

7

Default & Recovery

If monitoring reveals credit deterioration or a counterparty fails to meet its obligations, Port's escalation and recovery framework activates. This includes a three-stage escalation process (amber triggers, red triggers, events of default), defined recovery procedures, and a loss waterfall that protects senior investors through multiple layers of credit enhancement.

See Default & Recovery for the full escalation process, recovery procedures, and loss waterfall.

8

Repayment & Maturity

Each facility follows an epoch schedule with pre-defined deposit and redemption windows. As underlying assets mature, collections are processed through SPV waterfall.

Collections Processing

Payments received from obligors are processed through the SPV waterfall - first satisfying senior investor claims, then junior positions. Collections are distributed to investors according to the facility's payment schedule.

Facility Recycling

For revolving facilities, repaid capital can be redeployed into new eligible assets within the same Market, subject to the facility's advance rates and concentration limits. This enables continuous deployment without requiring investors to re-allocate.

Redemption & Deposit Window

During the redemption window, Curators and independent allocators submit redemption requests via the Market's withdrawal queue. If requests exceed available liquidity, they are processed on a pro-rata basis (pari-passu). Redemptions settle at facility maturity; investors receive principal plus accrued returns, net of realized losses and fees. During the deposit window, allocators submit allocation requests via the Market's deposit queue.

Facility Maturity & Rollover

At the end of the term, depending on the facility structure, it is re-evaluated and rolled over to a new term.

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Next: Explore Port Markets for facility-specific mechanics, the Risk Framework for how each stage is governed, or For Investors to understand how to allocate capital.