# The Basics ![](/files/0Pp6rPKeU0pyA9nSaguK) At the core, P2P lending allows borrowers and lenders to strike a deal based on agreed-upon terms. * What is the collateral? * What is getting borrowed? * How long will the loan last? * What are the interests on the loan? By striking deals between two parties, **no liquidation** event will happen until the term ends. It’s a simple check; have funds been returned? * **Yes**. The borrower walks away with his collateral and the lender with his funds and interests. * **No**. The lender walks away with the collateral and can liquidate it to recover his funds. The killer feature of Feeder Finance’s P2P lending is not simply the P2P functionality but **the ability to allow the collateral to keep yield farming while it is getting used to back a loan; using** traditional vault receipt tokens (“RTs”). Feeder Finance’s vault contract will turn tokens in DeFi (single and LPs) into yielding RTs, where underlying assets sit inside auto-compounding vaults while representing RTs, are able to be collateralized for loans. Virtually unlocking liquidity while token holders are maximizing returns. Feeder Finance users can simply filter for products that support the RT structure, deposit, and take their RTs over to the lending protocol and start borrowing. *Now that we understand the basics of Feeder Finance P2P Lending, let's look at what's planned ahead when it's completely built out!* --- # Agent Instructions: 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: ``` GET https://docs.feeder.finance/products-and-services/peer-to-peer-lending/the-basics.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.