> ## 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. # Legal Structure > The SPV and lending operation behind Institutional Yield Institutional Yield operates through a multi-entity legal structure that separates on-chain deposits from off-chain institutional lending. *** ## How the entities connect ``` Depositor (on-chain) │ │ Signs Loan Agreement │ Deposits stablecoins into Kamino vault │ Receives vault share tokens ▼ Kamino Institutional Yield Vault │ │ Capital flows to lending operation via SPV ▼ Lending Operation (Liechtenstein, approved and supervised by the FMA) │ │ Originates overcollateralized loans ▼ Institutional Borrowers (KYC-verified) │ │ Collateral held at qualified custodians │ No ownership transfer to lender · No rehypothecation ``` *** ## The SPV The SPV is the legal entity that sits between depositors and the lending operation. It is set up specifically for this product — a standalone, single-purpose structure with no mixing of funds from any other activity. Depositor funds flow through the SPV into the lending operation, and interest and principal repayments flow back through the SPV to the Kamino vault. *** ## The lending operation The lending operation is the entity that originates and manages loans to institutional borrowers. It is approved and supervised by the **Financial Market Authority (FMA) in Liechtenstein**. **Key characteristics:** * The lending operator is licensed by the FMA and subject to ongoing supervision * Reports to the FMA, including loan positions and collateral status * Monthly attestation by an independent accounting firm * Uses an industry-standard loan management system for loan management and collateral tracking **What the lending operation does with depositor capital:** 1. Receives capital from the SPV 2. Originates overcollateralized loans to KYC-verified institutional borrowers 3. Ensures collateral is posted at qualified custodians under tripartite agreements 4. Manages the loan portfolio — monitoring LTV, processing interest payments, handling maturities and rollovers 5. Returns principal and interest to the SPV The depositor's economic exposure spans the entire structure — from the SPV through the lending operation to the underlying collateralized loans. The quality of the depositor's position depends on the operational integrity of every entity in the structure.