> For the complete documentation index, see [llms.txt](https://docs.kasu.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kasu.finance/risk-structuring-and-security-collateral-structuring/security-collateral-structuring-covenants-and-undertakings.md).

# Security (Collateral) Structuring, Covenants & Undertakings

All lending via Kasu flows to the Credit Originator of the Lending Strategy chosen to originate and manage loans to End Borrowers, which comprise creditworthy 'real-world' businesses. These business loans are underpinned by real-world cash flows and security structuring. Credit Originators originate Business Lending Opportunities according to their own credit due diligence policies and manage all loan servicing, credit risk, covenant reporting, repayments, recovery action, exercising their security (collateral) position etc. 

This is all disclosed within the Overview and Details tabs of each Lending Strategy, including a full detailed overview in the Strategy Decks provided, which can be downloaded via the Overview tab. Credit Originators may take security (collateral) over End Borrowers as a means of recovering funds (if possible) in the event of losses. They may also use a Tranching structure to set ranking priority claims to the recovery of funds (if any) in the event of losses. 

Apxium - Kasu's technology partner and launch Credit Originator - currently offers three Lending Strategies with the following credit frameworks and security structuring.

### Lending Strategy 1: Professional Fee Funding <a href="#professional-fee-funding" id="professional-fee-funding"></a>

<figure><img src="https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FllKWEtbGmyFJ1m1lKSJv%2Fuploads%2FoST80HspB8euBUU60KK9%2Fimage.png?alt=media&#x26;token=aa5f4209-88cf-40ac-9ab7-4bbf3d499a79" alt=""><figcaption></figcaption></figure>

### Lending Strategy 2: Whole Ledger Funding <a href="#whole-ledger-funding" id="whole-ledger-funding"></a>

<figure><img src="https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FllKWEtbGmyFJ1m1lKSJv%2Fuploads%2FWmRW3x9buH6fzlgU0Bv8%2Fimage.png?alt=media&#x26;token=cb31468f-8b7c-4f69-a084-555bc2973090" alt=""><figcaption></figcaption></figure>

### Lending Strategy 3: Taxation Funding <a href="#taxation-funding" id="taxation-funding"></a>

<figure><img src="https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FllKWEtbGmyFJ1m1lKSJv%2Fuploads%2FYnIobcVfn533Hn28j1M3%2Fimage.png?alt=media&#x26;token=df72cee9-fffc-4bcb-abe0-7030e18022a8" alt=""><figcaption></figcaption></figure>

<br>


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://docs.kasu.finance/risk-structuring-and-security-collateral-structuring/security-collateral-structuring-covenants-and-undertakings.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.