> For the complete documentation index, see [llms.txt](https://docs.bima.money/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bima.money/vault/architecture.md).

# Architecture

<figure><img src="https://1150339483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuV0XpSBB66aR52DO5D6k%2Fuploads%2FfsAF1nGC6M7xLniiNZqO%2Fsystem-architecture.svg?alt=media&amp;token=b595cafe-a9fe-4c4e-b50f-aa51705760d0" alt=""><figcaption></figcaption></figure>

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## The BIMA Vault where you act

The vault handles everything you do directly:

* deposits and issuance of vault shares
* USDC claims
* repayment
* redemption
* enforcement of the vault's lifecycle rules and windows

One vault is deployed per month, so cohorts remain independent of one another.
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## Accountable vault infrastructure

Accountable provides the vault-as-a-service layer: the controls, asset verification and reporting that sit around your deposit. Its role is integrity of the deposit confirming what was deposited, that it remains as agreed, and producing the record you and any auditor can check.
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## FalconX collar and capital

FalconX is the institutional counterparty that:

* holds the collateral under the collar for the duration of the term,
* sources the capital released against the collared position.

This is why the vault can offer a fixed twelve-month term at 0% with no liquidation engine. The financing comes from an institutional counterparty against a structured position, rather than from a pool of on-chain lenders who need liquidation rights to protect themselves.
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## BIMA's role

BIMA structures the collar, sets the strike levels with the counterparty, tracks the vault lifecycle, handles reconciliation and controls redemption approvals. **BIMA does not hold your collateral.**

## Where trust sits

Being direct about this matters more than the diagram.

**Verifiable by you:** your deposit, your shares, your claim, your repayment, your redemption. These are recorded on-chain and you do not need to take anyone's word for them.

**Requiring trust:** during the term, your collateral is held by FalconX under the collar. Collar settlement, reconciliation and redemption approvals run through BIMA's processes and the counterparty relationship.

That is a genuine trust assumption and it differs from a fully on-chain lending protocol where collateral never leaves the contract. It is also the reason the product can offer 0% and downside protection at all. You accept it when you deposit.

See [Risk Management](file:///8003494/operations/risk-management.md) and [Risk Disclosures](file:///8003494/operations/risk-disclosures.md).