> For the complete documentation index, see [llms.txt](https://docs.gage.cash/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.gage.cash/start-here/v2.md).

# What V2 brings

Smaller lending commitments, tradable lender positions on supported contracts, and one-step cash-out with Gage V2, and what the current engine changes.

**Fractional lending · Tradable lender positions · One-step cash-out**

V2 keeps the same choice: pay the fixed cap to recover your collateral, or walk away and let the lenders receive it. It adds smaller lending commitments and more ways for borrowers and lenders to exit on supported contracts.

New listings go to the current engine, the Intent core, since 15 October 2026: partner vaults fund each listing whole, in one transaction, and wallets lend through a partner vault on Earn. Each lend asset, GLD, NVDA and HIMS, has an Intent core of its own. The three earlier engines, two V2 engines and V3, hold their existing positions. The rules on this page apply to positions on these engines; existing V1 deals keep their own rules.

## Lend a quarter, half, or the whole deal

A deal has four equal lending quarters. On the earlier engines a lender could fund **25%, 50%, 75% or 100%** of the requested amount, and several lenders could fill a deal together. On the current engine partner vaults take one to four quarters each and fund the whole deal in one transaction.

The loan starts only when **all four quarters are funded**. Until then, the borrower receives no money, no origination fee is charged, and neither the loan clock nor the reward clock starts. A listing has a **24-hour funding window**: before full funding, lenders can withdraw their quarters and the borrower can cancel; after the window, the borrower, or anyone, can end the funding and every lender is refunded.

Once active, each lender receives their share of the repayment or recovered collateral. Contracts that support lender sales also let that lender sell their quarters. Positions on the original V2 engine retain nontransferable lender rights.

**The borrower still repays the entire cap to recover the entire position.** Funding in quarters does not allow repayment or collateral recovery in quarters.

For an LP position, normal repayment returns the intact position to the reclaim-right holder. If the deal defaults, its liquidity is removed and fees are collected. Lenders receive the underlying tokens in proportion to their quarters, rather than a shared LP position. Those tokens are not automatically sold for USDG.

## When repayment closes

On the current engine and on V3 there is no grace window: repayment closes and default finalization opens at the end of the term, in the same second. On the two V2 engines a 48-hour grace window follows the term, in which only the borrower can act. The position page shows each position's own deadline: `EXPIRY IN` before the term ends, then `TERM ENDED` on the current engine and V3, or `GRACE ENDS IN` on a V2 engine.

## Sell your lending position

On a position that offers **Sell lending position**, a lender can list 25%, 50%, 75% or 100% of the loan, up to the share they hold. The selected quarters sell together at one price in USDG. A buyer buys from the position's own page.

The buyer takes over the selected share of:

* The fixed repayment, if the borrower reclaims.
* The collateral recovered after default, if the borrower does not reclaim.
* Future lender sGAGE earned while the loan remains open, on its original reward clock.

Already earned sGAGE stays with the seller, including anything not yet claimed. A sale does not restart rewards, extend the loan, reduce the borrower's repayment, or release collateral early. Early closure still stops future rewards.

For example, you hold a quarter originally funded with **250 USDG**, entitled to **275 USDG if repaid**. You sell it for **260 USDG**. The 1% sale fee is **2.60 USDG**, leaving **257.40 USDG** for you to withdraw. The buyer receives the 275 USDG repayment claim, or the quarter's default collateral, plus subsequent rewards. Their return depends on the price they paid and the eventual outcome.

You can list, change or cancel an offer while the loan is active, until repayment or default is finalized. Settlement ends every offer on that loan. A listing does not guarantee a buyer, a sale price or an immediate exit. Recovery after finalized default remains a separate withdrawal; those settled claims are not resold through this market.

Lender sales apply only to positions created on a contract that supports them: the second V2 engine and V3. On the current engine the lenders are partner vaults, and a vault's manager can offer the vault's part of a loan for sale; see [Partner vaults](/earn/partner-vaults.md). A new deployment does not change existing loans. An unfunded earlier listing must be cancelled, its collateral withdrawn and a new listing created to use the new rules.

## Cash out in one step

Instead of supplying the full cap from your wallet, the reclaim-right holder can use a supported cash-out route to repay the cap, sell the recovered collateral and receive the remaining USDG in one transaction. It is the **Or cash out** link at the foot of the borrower's loan card.

The sale must cover the entire cap and any financing costs. The **0.5% cash-out fee applies only to the cash left after those costs**, not to the whole collateral sale.

| Example                                |        USDG |
| -------------------------------------- | ----------: |
| Collateral sale proceeds               |       1,200 |
| Full cap repaid                        |      −1,000 |
| Financing cost                         |          −1 |
| Cash remaining before the platform fee |         199 |
| Cash-out fee, 0.5% of 199              |      −0.995 |
| You receive, before gas                | **198.005** |

Cash-out depends on supported routes and available trading liquidity. If the sale cannot meet the required minimum proceeds, the whole operation fails without closing the position. Paying the cap normally remains a separate option and carries no additional cash-out fee.

## Rewards follow the person holding the right

Rewards already earned belong to the person who earned them, even if they have not claimed them yet. When lending quarters are sold on a supported contract, the seller keeps their earned lender rewards and the buyer earns subsequent ones. The sale does not restart the reward clock.

V2 rewards use the original deal term: halfway through the term, **25% of the allocation has been earned**, not 50%. If a position closes early, both sides keep what they have earned, but stop earning more from that deal. The unearned portion returns to the reward system.

Opening, funding and closing in the same block earns **zero sGAGE**. Waiting a short time earns only the small fraction due for that time; each new funded loan still pays its origination fee. This does not mean every possible self-funded deal is guaranteed to lose money.

**Rewards depend on available budgets.** V2 can operate with zero rewards. When new budget becomes available, newly activated eligible deals may receive rewards. A deal activated with a zero allocation does not automatically gain rewards later.

## Fees support the GAGE/sGAGE floor

| Action                                             | Fee                    | Charged on                                                                    |
| -------------------------------------------------- | ---------------------- | ----------------------------------------------------------------------------- |
| Loan activation                                    | **1% origination fee** | The gross amount funded, deducted before the borrower receives it             |
| Reclaim-right sale through Gage                    | **1% sale fee**        | The price paid for the right, deducted from the seller's proceeds             |
| Lender-position sale through Gage, where supported | **1% sale fee**        | The price paid for the selected quarters, deducted from the seller's proceeds |
| Cash-out                                           | **0.5% cash-out fee**  | Remaining cash after the full cap and financing costs                         |

For example, a lender funds 1,000 USDG and the borrower receives 990 USDG after the origination fee. The repayment cap is a separate agreed amount.

These fees go toward **buying GAGE and adding permanent GAGE-only floor liquidity in the GAGE/sGAGE pool**. Processing happens in batches, so each transaction does not trigger an immediate purchase. See [Deal fees and floor liquidity](/pool/buyback.md).

## What happens to existing deals?

Existing V1 deals keep their original repayment, collateral and reward rights. In particular, V1 reward drips keep their original rules; V2's early-close reward cutoff does not rewrite them.

Positions funded on the two V2 engines keep the 48-hour grace window they were funded with. Nothing moves a position from one engine to another: an unfilled listing on an earlier engine is cancelled and relisted, a funded one runs to its own deadline.

The rules on this page apply to positions on the native engines. Existing V1 positions retain their original rules.


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