> 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. *** ### 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. *** ### 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. --- # 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.arenas.fi/atomica/financing-markets.md?ask=&goal= ``` `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.