> ## Documentation Index
> Fetch the complete documentation index at: https://kamino.com/docs/llms.txt
> Use this file to discover all available pages before exploring further.
# Institutional Yield
> Generate returns via regulated lending operations to institutional borrowers
Kamino Institutional Yield is a product that generates stablecoin yield by deploying capital to institutional, overcollateralized, and regulated lending operations. Loans are extended to institutional borrowers that meet strict [lending criteria](/products/institutional-yield#lending-criteria), with high-quality, liquid collateral (currently BTC) posted at [qualified custodians](/products/institutional-yield/collateral). In this structure, there is [no collateral ownership transfer](/products/institutional-yield/collateral#no-title-transfer) to the lender, and rehypothecation of collateral is contractually prohibited, with collateral sitting in segregated accounts at the custodian.
Every loan is capped at 60% LTV (typically lower). The lending operation reports to the Financial Market Authority (FMA) in Liechtenstein and is [independently attested monthly](/products/institutional-yield/transparency#monthly-attestation). Depositors see [real-time, per-loan data](/products/institutional-yield/transparency#real-time-loan-data) sourced from the same systems the regulator monitors.
New to Institutional Yield? The [Concepts](/products/institutional-yield/concepts) page explains the core structure — what an SPV is, how overcollateralized lending works, and how withdrawals and liquidity are structured.
SPV and lending operation overview
Collateral framework, qualified custodians, LTV structure, and margin calls
Real-time reporting, monthly attestation, and what data depositors can access
Risk disclosure — unsecured loan structure and lending operation risks
The agreement depositors sign when they deposit
Direct answers to the most common questions
***
## How it works
**1. Deposit stablecoins into the Institutional Yield Vault on Kamino.**
You receive vault share tokens at the current share price. As part of the deposit process, you agree to the [Loan Agreement](/products/institutional-yield/loan-agreement) with the Institutional Yield SPV. This agreement governs your legal relationship as a depositor into the product.
**2. Capital flows into the Kamino Institutional Yield structure.**
Stablecoins flow into the Institutional Yield structure, which deploys capital to the lending operation. The lending operation originates and manages overcollateralized loans to institutional borrowers, backed by collateral held at qualified custodians.
**3. The lending operation originates overcollateralized loans.**
Each loan is backed by collateral held at qualified custodians under tripartite agreements. Maximum LTV is 60%, though typical LTV is lower. Collateral ownership remains with the borrower — the custodian holds the collateral independently, and rehypothecation is contractually prohibited.
**4. Yield flows back to vault depositors.**
Interest earned on the loan portfolio flows back through the structure to the vault. Share value appreciates proportionally as the vault accrues interest. Rates are set at origination for each loan term. Loan terms can vary between borrowers — the current liquidity buffer is indicated in the vault UI.
### Withdrawals
The vault maintains an instant liquidity buffer. Withdrawals within the buffer settle immediately. Withdrawals beyond the buffer enter an on-chain FIFO (first-in, first-out) queue and are processed as underlying loans mature and principal is returned to the vault. See [Liquidity mechanics](/products/institutional-yield/concepts#liquidity-mechanics) for full details.
***
## Vault characteristics
| Parameter | Terms |
| ---------------------------- | --------------------------------------------------------------------------------------- |
| **Target yield** | 6–8% APY |
| **Deposit currency** | At launch, USDC. The product is designed to support a variety of stablecoins over time. |
| **Instant liquidity buffer** | A portion of AUM is held for immediate withdrawals |
| **Redemption model** | Hybrid — instant buffer + queued withdrawals |
| **Monthly attestation** | Independent accounting firm |
***
## Lending criteria
Institutional Yield deploys only to lending operations that meet strict criteria. The following must be met for loans to flow from the Institutional Yield vault to borrowers:
| Criterion | Requirement |
| ------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Underlying collateral** | High-quality, liquid assets (currently BTC). Accepted collateral types are disclosed on the vault UI and may evolve over time — any changes will be reflected transparently in vault reporting. |
| **Maximum LTV** | 60% (typically lower — real-time LTV visible in vault UI) |
| **Collateral rehypothecation** | Prohibited — ownership remains with the borrower |
| **Loan duration** | Rolling terms (e.g. 60-day) |
| **Interest calculation** | 365-day year basis |
| **Regulatory oversight** | Lending operation approved and supervised by the Financial Market Authority in Liechtenstein |
***
## Comparison to standard DeFi lending
| Attribute | Standard DeFi | Institutional Yield |
| ------------------------ | -------------------------------------------------- | ----------------------------------------------------------------------------------- |
| **Yield source** | On-chain borrow demand | Institutional overcollateralized lending |
| **Borrower profile** | Pseudonymous | KYC-verified institutional entities |
| **Collateral location** | Smart contracts (on-chain) | Qualified custodians (off-chain) |
| **Collateral coverage** | Up to 86% LTV | 60% max LTV (typically lower) |
| **Rate type** | Floating (utilization-based) | Set at origination |
| **Regulatory oversight** | Protocol-level governance | Approved and supervised by the Financial Market Authority in Liechtenstein |
| **Liquidity** | Instant (utilization-dependent) | Hybrid — instant buffer + queued |
| **Transparency** | Open-source smart contracts, on-chain verification | Real-time reporting from loan management software + monthly independent attestation |
***
## Contact
**Institutional Yield Enquiries:** [institutional@kamino-foundation.com](mailto:institutional@kamino-foundation.com)
***
## Disclaimer
The Kamino Institutional Yield vault is made available subject to Kamino's Terms and Conditions and geo-blocking policy. By accessing this page or interacting with the vault, you confirm that you are not located in a restricted jurisdiction and that your participation complies with all laws and regulations applicable to you. Nothing on this page or within the associated documentation constitutes financial, investment, legal, or tax advice, nor should it be construed as a solicitation or offer to buy or sell any financial instrument or to participate in any particular investment strategy.