# Repo Models ### Title Transfer Repo At launch, TermPrime supports **Title Transfer Repo (TTR)**. * On matching, the **lender becomes the legal owner of the collateral**. Ownership genuinely transfers, reflecting the legal and risk-management conventions many institutions expect in a repo. * At maturity, the borrower repays principal plus interest and recovers the collateral, or the two parties complete settlement off-platform. * **TermPrime does not intervene in default handling.** If a borrower fails to repay, resolution is a matter for the parties' off-platform legal agreement; the platform's role is limited to notification and record-keeping. There is no platform-driven seizure of assets. This keeps the platform's role clean: TermPrime matches the trade and records it, while the legal and risk relationship remains between the two institutions. ### Pledge Repo A second model, **Pledge Repo**, is planned for a future release and is **not part of the current scope**. In this model, collateral is locked but ownership remains with the borrower, and the protocol supports on-chain enforcement: defined trigger conditions (such as a breach of the liquidation threshold or maturity default) allow a permissioned liquidator to act. Because Pledge Repo involves more complex delivery and enforcement flows, it is deferred to a later phase. > *Note: liquidation in the Pledge Repo model is performed by a permissioned liquidator, a named and authorized role rather than an open or anonymous liquidation bot. Detailed mechanics are to be defined.* ### Rehypothecation **Rehypothecation** is also planned for a future release and is **not part of the current scope**. In a Title Transfer Repo, the lender already holds legal ownership of the collateral for the term of the loan. Rehypothecation lets the lender put that collateral to work: the collateral received in one loan can be re-pledged to borrow in a further loan. This improves capital efficiency, since the same collateral can support activity at more than one point in the chain rather than sitting idle for the term. Supporting this on-platform means tracking the resulting **collateral chain** so that obligations stay clear at every link. For example, where one participant lends against collateral and then reuses that collateral to borrow from another, maturities and unwinds along the chain need to be ordered correctly, and a default at one link needs to be handled in a way that keeps the rest of the chain coherent. This added complexity is why rehypothecation is deferred to a later phase. Consistent with TermPrime's neutral role, the platform's job here is to track and record the chain. Each participant still evaluates its own counterparties, sets its own limits, and bears its own exposure. --- # Agent Instructions: 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: ``` GET https://docs.termprime.finance/repo-models.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.