> For the complete documentation index, see [llms.txt](https://docs.arenas.fi/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.arenas.fi/atomica/financing-markets.md).

# Financing Markets

Financing Markets are **Atomica credit markets** configured for specific real-world financing programs and **governed by a Market Operator**.\
Each market has its own liquidity, interest model and borrowers set, but all of them run on the same Atomica financing products described on the Atomica Protocol page.

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### What is a Financing Market?

A Financing market is a dedicated financing pool for a specific use case, for example:

> `Brazil – Coffee – USDC`

A market can define:

* **Seniority of tranches repayment** (whether it is a higher risk (junior pool - higher interest and later repayments), or a lower risk (senior pool - lower interest and earlier repayments),
* **What is being financed** (sector / type of good (service) / program),
* **Which base asset is used** for deposits and obligations (capital token - i.e. USDC),
* **How interest is priced** for borrowers,
* **Who is** **allowed to borrow** in that market.
* **What is being financed** (sector / geography / program),
* **Which collateral is used** for deposits and loans (capital token)

Under the hood, the market is a configurable smart contract that follows the rules of the underlying Atomica financing product.

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### Roles in a Financing Market

* **Market Operator**
  * Sets up the market parameters within product limits.
  * Approves or rejects **financing requests**.
  * Earns a share of interest as a **market fee**.
* **Liquidity Providers (Lenders)**
  * Supply the capital token to the market and receive **LP tokens**.
  * Earn interest (and possible incentives) from funded obligations
  * Are subject to the market’s **liquidity and withdrawal rules**.
* **Borrowers**
  * Create a **financing application** (borrower specific NFT) on a particular financing market.
  * Submit **financing requests** with desired obligation amount. Requests are based on a specific financing application and linked to it.
  * Sign a **real-world** contract (financing agreement) for that market’s program.
  * Receive funds only after **Market Operator** (or **Approver**) **approval** and sufficient liquidity in market pools. It can be a partial approval of the requested amount, and it can be borrowed a part of the approved amount up to available liquidity and other financing request parameters/ limitations.

Financing Markets are therefore the place where Arenas connects on-chain liquidity with **off-chain**, **program-specific** **financing terms**/ **agreements**, all powered by the Atomica engine.