> ## 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. # FAQ > Direct answers to the most common questions about Institutional Yield ## Is my deposit secured or unsecured? **Your loan to the SPV is unsecured.** The collateral exists at the lending operation level — between the lending operation and its institutional borrowers — under tripartite custodian agreements. Your legal claim is on the SPV's assets, which are primarily composed of those overcollateralized lending positions. The underlying loans are overcollateralized with high-quality, liquid assets (currently BTC), but your deposit into the SPV does not have direct collateral attached to it. Your protection comes from the fact that the SPV's assets are backed by overcollateralized loans, combined with the reporting and attestation framework that provides visibility into the lending operation. See [Loan Agreement](/products/institutional-yield/loan-agreement). *** ## What happens if a borrower defaults? If an institutional borrower defaults on a loan: 1. The lending operation instructs the qualified custodian to liquidate the borrower's collateral under the tripartite agreement 2. The liquidation proceeds are used to repay the loan 3. Because loans are originated at a maximum 60% LTV (and typically lower), the collateral should more than cover the loan in most scenarios The only scenario where depositors face a loss is if the underlying loan cannot be repaid and collateral liquidation is insufficient to cover the balance — for example, an extreme and rapid collateral price decline combined with delayed liquidation. *** ## What happens if there is a loss in the portfolio? If the lending operation experiences a loss that cannot be recovered through collateral liquidation: * The loss reduces the SPV's available assets * This reduces the value backing depositor claims * The loss would be reflected in the vault share price — share value would decrease proportionally *** ## How do I know the BTC collateral actually exists? Multiple independent verification layers confirm collateral: 1. **Real-time data** from the lending operation's loan management system — the same data seen by the FMA 2. **Monthly attestation** by an independent accounting firm — formal verification of loan balances and collateral coverage 3. **Regulatory reporting** to the FMA See [Transparency](/products/institutional-yield/transparency). *** ## When can I withdraw my deposit? * **Immediately** — if the withdrawal is within the liquidity buffer (capital not deployed into active loans) * **After loan maturity** — if the buffer is exhausted, your withdrawal enters a FIFO queue and is processed as underlying loans mature and principal returns There is no early redemption for capital deployed into active loans. Loan terms are rolling, so the maximum wait in the queue depends on when the next batch of loans matures. See [Liquidity mechanics](/products/institutional-yield/concepts#liquidity-mechanics). *** ## Who attests to the portfolio? An independent accounting firm conducts monthly attestations of the Institutional Yield portfolio, covering loan balances, collateral coverage, and portfolio health. The lending operation also reports to the Financial Market Authority (FMA) in Liechtenstein. *** ## What is the SPV and why does it exist? The SPV is the legal entity that receives depositor funds and deploys them to the lending operation. It exists to: * **Ring-fence risk** — SPV liabilities are contained within the SPV and do not reach Kamino's on-chain protocol * **Provide a legal structure** for off-chain institutional lending See [Legal Structure — The SPV](/products/institutional-yield/structure#the-spv). *** ## What yield can I expect? The target yield is **6–8% APY**. Historical returns and current projected returns are displayed on the Kamino UI. The actual yield depends on: * The rate negotiated with institutional borrowers for each loan term * The proportion of vault capital deployed vs. held in the liquidity buffer (undeployed capital earns lower yield) * Portfolio performance *** ## How is Institutional Yield different from other on-chain institutional lending products? | Feature | Kamino Institutional Yield | Typical comparison | | ------------------------------ | ----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------- | | **Collateral** | High-quality, liquid assets (currently BTC), held at qualified custodians under tripartite agreements | Varies — some products accept diverse or incentivized collateral | | **Max LTV** | 60% (typically lower) | Varies — some products accept higher LTV | | **Regulatory oversight** | Approved and supervised by the Financial Market Authority in Liechtenstein | Typically unregulated | | **Collateral rehypothecation** | Contractually prohibited | Some products allow rehypothecation | | **Ownership transfer** | Collateral ownership remains with borrower | Some products require ownership transfer | | **Independent attestation** | Monthly (independent accounting firm) | Often quarterly or annual, if any | | **Real-time data** | Per-loan data from lending operation systems | Rarely available | | **Custody** | Bankruptcy-remote, segregated at qualified custodians | Varies | *** ## Can I see individual loans? Yes. The lending operation provides per-loan data including loan amount, collateral value, and LTV. This data is displayed in the vault UI. Borrower identities and wallet addresses are protected by regulatory confidentiality requirements. *** ## Who are the institutional borrowers? Borrowers are KYC-verified institutional entities. Due to confidentiality requirements, individual borrower identities are not disclosed. Loan-level data (amounts, collateral values, LTV) is available without borrower identification. *** ## Does Institutional Yield introduce new smart contract risk? No. The Institutional Yield vault uses the same battle-tested Kamino smart contracts that power other Kamino products. There is no new on-chain technical risk — the vault infrastructure is identical to the existing, audited Kamino vault framework. *** ## What stablecoins are accepted? At launch, **USDC**. The product is designed to support a variety of stablecoins over time.