> For the complete documentation index, see [llms.txt](https://docs.usance.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usance.xyz/readme.md). # Introduction Usance is a clearing and risk layer on [X Layer](/understand-it/networks.md). It reads what a tokenized asset actually is, recognises a conservative portion of it as collateral, and lets you finance against that portion without selling. It also tells you, line by line, exactly how it arrived at the number. ## The problem Tokenization tells a chain that an asset *exists*. It does not tell the chain what the asset is worth as collateral, what could be recovered if it had to be sold under stress, or what rights the holder actually has. So most tokenized real-world assets sit idle: you can hold them and transfer them, but you cannot safely borrow against them, because nothing on-chain has done the work of turning an issuer's filing into a number a lender can trust. ## What Usance does Usance does that work, and shows it. * **Reads the evidence.** For every supported asset it fetches the issuer's own filing, hashes it, and extracts a structured, versioned set of claims about its legal rights, custody, redemption terms and transfer restrictions. That becomes the asset's **Passport**. * **Recognises a conservative value.** Market price is not liquidation value. Usance recognises only the portion it could defend under stress, applying named haircuts in a fixed order and flooring the result at a stressed-exit estimate. The recognised value is deliberately lower than the market value, and every deduction is visible. * **Lets you finance against it.** Borrow settlement liquidity against the recognised value, keep the exposure, and repay whenever you want to take the asset back. The position stays yours the entire time. * **Bounds any automation.** You can delegate a narrow, signed [mandate](/understand-it/security.md#a-mandate) to an agent, for example to maintain a safety buffer, inside limits you set. It can only ever reduce risk, never widen your permissions, and never withdraw your collateral. * **Proves every step.** From the original document to the final on-chain state, each action writes a public receipt that anyone can verify without a wallet. ## What Usance is not * **It is not custodial.** Usance never holds your keys or your assets. Every action is a transaction you sign from your own wallet. * **It does not invent numbers.** Where a value cannot be read from the chain or the evidence, the interface says so rather than showing a plausible-looking placeholder. * **It is not live with real value yet.** Usance currently runs on X Layer **testnet** with labelled test stand-ins. See [Networks and what is live](/understand-it/networks.md) for exactly what is and is not executable today, and the path to mainnet. ## Where to go next * [**How Usance works**](/understand-it/how-it-works.md) traces the path from evidence to Passport to recognised value to capacity, and the risk machinery that governs it. * [**Security and authority**](/understand-it/security.md) covers the difference between a connection, a session, an allowance and a mandate, and why withdrawal can never be delegated. * [**Networks and what is live**](/understand-it/networks.md) lays out testnet today, the mainnet plan, and an honest integration status. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.usance.xyz/readme.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.