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

# How it works

> The borrower flow from request to active position.

## The borrower flow

IRIS is built so borrowers can ask for fixed terms without running the floating-rate venue position themselves.

<Steps titleSize="p">
  <Step title="Set your loan terms">
    Define the loan you want: collateral asset and amount, borrow asset and amount, duration, the highest fixed rate you will accept, and optionally which venues you are willing to allow.
  </Step>

  <Step title="Receive a quote">
    A solver reviews the request and returns signed terms: the fixed rate, the maturity, the overdue rate and grace period that apply if you repay late, and the venue it will start on. Quotes are short-lived, so expect to act within about two minutes.
  </Step>

  <Step title="Settle onchain">
    If the quote looks right, you execute the settlement transaction. Settlement is atomic: your position opens, collateral is posted, the underlying venue borrow is established, and the borrowed funds are delivered, all in one flow.
  </Step>

  <Step title="Manage the position">
    Once the loan is live, you monitor health, add collateral if needed, and repay when you choose or when the loan matures. Behind you, the solver manages the floating-rate exposure within the venues you allowed.
  </Step>
</Steps>

## What usually happens next

Under normal conditions the solver's bond stays in the background and your experience is simply that of a fixed-rate loan sitting on a venue position.

Two risks still reach you, and they are different situations:

* Your collateral can be liquidated by the underlying venue if your health factor deteriorates. See [Venue liquidations](/home/user-guide/liquidations).
* In a severe stress case, the solver's bond can be liquidated and the loan falls back to the venue's floating rate. See [What backs your fixed rate](/home/user-guide/solver-backing).

Separately, maturity matters. Your quote sets an overdue rate and a grace period that apply if you are still open past your maturity date. See [Maturity, grace period and overdue](/home/user-guide/maturity-and-overdue).