Fund Overview

How it Works

Zivoe provides qualified depositors with access to actively managed consumer credit portfolios through a structured, bankruptcy-remote system.

Whether through our existing Senior Tranche or the upcoming zveUSD vault, capital flows through the same infrastructure:

1. Users deposit stablecoins into the Zivoe Vault.

2. Capital is deployed off-chain through regulated originators to fund consumer loans.

3. Loans are pooled into a Special Purpose Vehicle (SPV), where repayments are received and managed.

4. Interest and principal flow back to the vault, either:

   • As fixed yield for the current Senior Tranche

   • As NAV appreciation for future zveUSD holders

Beginning in May 2025, Zivoe will launch zveUSD, an ERC-4626 token that simplifies participation, auto-compounds yield, and enables tokenized liquidity. Until then, deposits remain open into the Senior Tranche.

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Why Consumer Credit?

Zivoe focuses on a segment of the private credit market that remains significantly underutilized: nonprime consumer lending.

The U.S. consumer credit market exceeds $1.5 trillion in size¹. Within that, unsecured personal loans reached a record $251 billion in Q4 2024, with originations growing 15.2% year-over-year and FinTech lenders now accounting for nearly 46% of new account balances¹.

Historically, access to this market has been limited to banks, hedge funds, and institutional credit investors. Zivoe changes that. By leveraging on-chain infrastructure and bankruptcy-remote structures, Zivoe enables anyone who qualifies to access this asset class, with full transparency into underlying loan performance and mechanics.

This segment offers:

• Consistent borrower demand, particularly as banks tighten lending

• Shorter-term loans and smaller ticket sizes, which improve capital turnover and portfolio diversification

• Strong data-driven underwriting by nonbank originators using alternative data models

Performance data continues to support this thesis:

• Delinquencies across subprime and near-prime borrowers have improved year-over-year, as of February 2025²
• Historical data shows that nonprime portfolios have exhibited lower volatility than prime credit during recessions³

Zivoe’s credit strategy is managed by a team with decades of experience across consumer finance, credit risk, and structured lending. All capital is deployed through a risk-isolated SPV structure, with oversight and performance monitoring built in from origination to repayment.

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Yield & Liquidity Model

Yield Structure

• Target Yield: 14%-17% APY (net to depositor)

• ZVE Token Rewards: Additional incentives available for users minting zveUSD

• Protocol Fee: 15% of gross revenue is allocated to the development entity to fund operations and infrastructure

Liquidity Structure

• Current: Deposits accepted via the Senior Tranche with fixed yield exposure

• May 2025: zveUSD will launch as a transferable ERC-4626 token

• Redemptions: Direct redemptions through the protocol will be introduced as Zivoe reaches sufficient scale and liquidity. Until then, tokenholders will be able to exit through secondary market trading via a Curve pool supported by a strategic partnership with Frax.