Loan Lifecycle

Phase	Timing	Description
1. Credit assessment	Daily (off-chain)	Lista scores eligible Binance MPC wallets, assigns credit limits, and publishes a new Merkle root to CreditBroker.
2. CreditToken mint/burn	After root update	User submits Merkle proof to claim or adjust CreditToken balance. Mint for increased score, burn for reduced score.
3. Supply and borrow	T = 0	Borrower calls CreditBroker.supplyAndBorrow(amount, proof). Proof is validated, broker calls Moolah.borrow() on behalf of user, upfront interest is deducted, and net amount is disbursed.
4. Repayment	On or before maturity	Borrower calls repay(). Principal returns to vault.
5. Grace period	Maturity to maturity + grace	Loan is overdue but penalty is not yet applied. Borrower can still repay principal plus origination fee.
6. Penalty applied	After grace period	A 3% penalty is applied to outstanding debt and routed to Credit Vault.
7. Blacklist	After penalty trigger	Merkle-gated operations (supply/withdraw/borrow) are suspended until full repayment including penalty.
8. Reinstatement	After full repayment	Blacklist is removed. Credit score may be restored gradually, based on policy.

Notes

• Interest is typically collected upfront in the broker flow.

• CreditBrokerInterestRelayer routes interest to Credit Vault.

• Merkle proof checks are central to both credit-limit updates and borrow authorization.