> ## Documentation Index
> Fetch the complete documentation index at: https://docs.positions.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Overview

> Introduction to the Positions Finance protocol and its core concepts

<Info>
  Documentation is actively being worked on and may not have complete information.
</Info>

## Overview

Positions Finance is a composable collateral protocol. Its primary function is to enable users to turn yield-generating, staking, or otherwise locked assets into on-chain collateral that is usable across a broad range of DeFi applications—without interrupting yield or requiring asset transfers, wrapping, or duplication.

## Core Innovation: Proof-of-Collateral

The core of Positions Finance is the Proof-of-Collateral mechanism. This formally records a user's on-protocol positions (deposits, yield balances, open debts, and collateral availability) in a single, dynamic on-chain primitive. Users retain full exposure to staking or vault rewards, while this same locked principal is recognized as collateral—enabling borrowing and composability across multiple protocols and chains without redundant asset transfers/bridging, wrapping, or idle capital.

## How It Works

From a user's perspective, interacting with Positions Finance means:

<Steps>
  <Step title="Deposit Assets">
    Supply your tokens to vaults or liquidity pools (e.g., Polymarket Vault, Berachain Reward Vaults) to start earning, or turning those into Collateral.
  </Step>

  <Step title="Retain Bets/Yields">
    Keep your Polymarket Bets live or continue to earn rewards or yield (if applicable) on your deposited positions without interruptions.
  </Step>

  <Step title="Translate value into your Proof-of-Collateral">
    Receive a Proof-of-Collateral that represents your staked or deposited bet or position.
  </Step>

  <Step title="Use as Collateral">
    Use your collateral across integrated DeFi apps — with live tracking of your collateralization and debt levels.
  </Step>

  <Step title="Borrow, Loop, or Leverage">
    Simply Borrow liquidity on Positions's Lend/Borrow Market or deploy advanced strategies like betting more, going delta neutral, looping for yield, or leveraging on perps — all backed by your active collateral.
  </Step>
</Steps>

## Core Components

<Card title="Vaults" icon="vault">
  Deposit supported assets into secure vaults. Balances are tracked precisely, rewards accrue automatically (if any), and all activity is translated into your Proof-of-Collateral for transparent on-chain accounting.
</Card>

<Card title="Proof-of-Collateral (PoC)" icon="credit-card">
  Acts as the protocol’s real-time state engine—tracking every user’s deposits, earned yield, borrowing activity, and collateral health. Provides a single source of truth for protocol functions and external composable integrations.
</Card>

<Card title="Lend/Borrow Market" icon="piggy-bank">
  Unlock liquidity against your productive collateral without unstaking or withdrawing. Borrowing limits are enforced by live PoC data, ensuring both lender safety and user access to funds—interest rates adjust by protocol parameters and market demand.
</Card>

<Card title="Leveraged Loops" icon="repeat">
  Amplify exposure and potential yield with over-collateralized borrowing and looping assets back into vaults against your collateral.
</Card>

## Core Features and Principles

<Card title="Retain-First Design" icon="sparkles">
  Keep your bets/positions active to earn optimized returns by supplying assets to high-yield lending pools and ecosystem vaults—across chains.
</Card>

<Card title="Proof-of-Collateral (PoC)" icon="credit-card">
  Every deposit translates value into your PoC—tracking both principal and accrued yield in real time, forming the basis for all collateral utility.
</Card>

<Card title="Collateral That Stays Productive" icon="money-bill-wave">
  Use your yield-generating deposits as collateral while continuing to earn rewards—no need to unstake or move assets.
</Card>

<Card title="Unified & Composable Collateral" icon="object-intersect">
  PoC NFT premitive is composable and chain-agnostic—enabling use across partner protocols for borrowing, margin, and advanced DeFi strategies.
</Card>

<Card title="Composable Infrastructure" icon="arrows-to-dot">
  Positions' architecture enables integrations with any protocol, turning idle capital into active collateral across the ecosystem.
</Card>

## Learn more –

<CardGroup cols={2}>
  <Card title="Proof-of-Collateral" icon="credit-card-front" horizontal="false" href="/introduction/proof-of-collateral" />

  <Card title="Protocol Overview" icon="book-open-cover" horizontal="false" href="/protocol-overview" />
</CardGroup>