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

# Servicing and enforcement

> What happens after a loan is funded, and if a borrower does not pay.

<Info>
  Outline. This page is a draft and will be completed before launch.
</Info>

What happens after a loan is funded, and what happens if a borrower does not pay.

## Servicing

\[TBD: servicer, payment collection and borrower reporting]

## Late payment

\[TBD: when a loan is classed as late, grace periods and default interest]

## Enforcement

The first lien is held for the vault. \[TBD: security agent / trustee, and the enforcement process in each market]

## Effect on depositors

A first-loss reserve absorbs losses first; losses beyond it reduce NAV. See [Defaults and impairments](/depositors/defaults-and-impairments).


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.