# Liquidation & Default Handling

**Title Transfer Repo (current product).** TermPrime does **not** perform liquidation. Because the lender already holds legal ownership of the collateral for the term, default handling is governed by the parties' off-platform legal agreement and resolved through their own legal or arbitration channels. The platform provides notifications and records only. It does not seize or move assets, and does not intervene in the parties' risk processes.

**Pledge Repo (roadmap).** In the future Pledge Repo model, enforcement is driven by on-chain trigger conditions:

* **Maturity default.** The loan reaches maturity without repayment.
* **LTV breach.** The loan's collateralization, measured against valid and recent price inputs, crosses the agreed liquidation threshold.

When a trigger condition is met, a **permissioned liquidator** executes the enforcement step. The parties' forward consent for this is captured once at origination, so no additional online signing is required at the time of enforcement. As noted above, the liquidator is a named, authorized role rather than an anonymous bot, and the detailed mechanics are to be defined.


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