1. Lender or Borrower place an order, specifying an asset and loan terms (interest rate, maturity, collateral and LTV). Upon order creation lender settles loan asset or borrower settles collateral to the smart contract.
2. As soon as counterparty matches an order the loan transaction is initiated. Lender's asset is transferred straight to borrower, borrower's collateral is stored in the smart contract until the trade maturity.
3. At the trade maturity if borrower pays out loan and interest in full, his collateral is returned to his wallet automatically.