> 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/lifecycle.md).

# Lifecycle

Every vault follows the same six phases on the same fixed schedule. Nothing about your terms or strike levels changes partway through.

<figure><img src="https://1150339483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuV0XpSBB66aR52DO5D6k%2Fuploads%2FyovCO1GfQkJVNoo8VKd9%2Fvault-lifecycle.svg?alt=media&amp;token=7306c735-50a2-4a37-a51e-4718178c1f04" alt=""><figcaption></figcaption></figure>

## The phases

{% stepper %}
{% step %}

## Deposit

*7-day window*

You deposit tokenised BTC and receive vault shares recording your position.
{% endstep %}

{% step %}

## Collar placed

*after the window*

Collateral is placed with FalconX under a collar. Strike levels are set and published.
{% endstep %}

{% step %}

## Claim

*on-chain*

Capital returns to the vault. You claim 50% of your BTC value in USDC, at 0%.
{% endstep %}

{% step %}

## Loan period

*12 months*

No interest, no liquidations, no margin calls, no changes to your strikes.
{% endstep %}

{% step %}

## Repayment

*at maturity*

You repay the USDC you claimed. The amount is unchanged from day one.
{% endstep %}

{% step %}

## Redemption

*7–15 days*

The collar settles against your strikes, then collateral is released.
{% endstep %}
{% endstepper %}

The two halves are covered in detail on their own pages:

* [Deposit and Claim](broken://pages/16e0ba04bc6b13c69950dba762583b202711d3e7)  phases 1 to 3
* [Repayment and Redemption](broken://pages/e1fcb1d601873db86c72a0ce4898fbc85797eafa)  phases 5 and 6

## Where each part happens

<figure><img src="https://1150339483-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FuV0XpSBB66aR52DO5D6k%2Fuploads%2Fy2x5nCv5XVV11K4Jtcx7%2Fcollar-placement.svg?alt=media&amp;token=1d37b0d6-2f0a-4fca-b1ad-18d56d5dd4bc" alt=""><figcaption></figcaption></figure>

Everything **you** do happens against the vault: depositing, claiming, repaying, redeeming.

The collar itself is executed off-chain, with FalconX, through vault infrastructure operated by Accountable. During the term your collateral is not sitting idle in a contract it is held under the collar that makes the 0% possible. That is a real difference from a purely on-chain lending protocol and you should understand it before depositing. See [System Architecture](broken://pages/d4c6f1aaf4e829c69f145972b39b389bf4b4359a).

## What cannot happen during the term

* Your position cannot be liquidated, at any price.
* You cannot receive a margin call.
* Your strike levels, LTV, term or repayment amount cannot be changed.
* Interest cannot start accruing.
* You cannot withdraw early, in part or in full.

The first four protect you. The fifth is the cost of the first four.