Frequently Asked Questions#
Common questions about Coalesce Finance.
General#
What is Coalesce Finance?#
Coalesce Finance is a fixed-rate, fixed-term lending protocol on Solana. Lenders deposit USDC to earn predictable returns, while whitelisted borrowers access funds without posting collateral.
How is this different from other lending protocols?#
| Feature | Coalesce Finance | Variable-Rate Protocols |
|---|---|---|
| Interest Rate | Fixed at deposit | Changes constantly |
| Term | Fixed maturity date | Open-ended |
| Collateral | None (credit-based) | Required |
| Borrower Access | Whitelisted only | Permissionless |
Is Coalesce Finance audited?#
Yes. The Coalesce Solana program was audited by kriko.eth in March 2026. The full report is available here. All findings were remediated and verified.
What blockchain does Coalesce Finance use?#
Solana.
For Lenders#
How do I earn interest?#
Deposit USDC into a market. Interest compounds daily until maturity, when you can withdraw. See For Lenders.
What APR can I expect?#
APR varies by market and is set by borrowers. Typical rates range from 5-15% depending on term and risk.
When can I withdraw?#
After the market's maturity date plus a 5-minute grace period. Funds are locked until then.
What if the borrower doesn't repay?#
You receive your proportional share of whatever is in the vault. If the borrower repays 80%, you get 80% of your expected value. All lenders share losses equally.
Can I withdraw early?#
No. Funds are locked until the market's maturity date — there are no exceptions and no early exit. This is by design, as fixed-term loans require a commitment from both sides. Make sure you are comfortable with the maturity date before depositing.
What happens if I withdraw at a loss and the borrower later repays?#
You can recover the difference. When you withdraw at a distressed settlement factor, the gap between your entitlement and actual payout is recorded on your position as haircut_owed. If the borrower later repays more and someone calls re_settle to improve the settlement factor, you can call claim_haircut to recover a proportional share of your loss. The recovery is proportional to the settlement factor improvement — if the factor goes from 75% to 100%, you recover your full haircut. See Haircut Recovery for details.
How are my returns calculated?#
Returns are calculated based on your shares, the market scale factor, and settlement factor. See Protocol Calculations.
What are shares?#
Shares (scaled balance) represent your ownership stake. They're fixed at deposit and converted back to USDC at withdrawal using the scale factor.
For Borrowers#
How do I become a borrower?#
Contact the Coalesce Finance team, complete KYC/KYB verification, and receive a whitelist entry with a capacity limit. See Whitelisting.
What does it cost to borrow?#
You pay the interest rate you set when creating the market, plus the protocol fee on interest. There are no separate flat borrow, deposit, withdraw, or repay fees.
Can I repay early?#
Yes. You can repay any amount at any time before or after maturity. Early repayment doesn't reduce interest owed.
What happens if I can't repay?#
Lenders receive less than expected (pro-rata via the settlement factor), and your whitelist capacity may be reduced or removed. See Risks.
Can I borrow from my own market?#
Technically yes, but it serves no purpose. You'd be lending to yourself and paying fees to the protocol.
Fees#
See Protocol Fees. The only fee is a percentage of interest earned — there are no deposit, withdrawal, borrowing, or repayment fees.
Security#
Are my funds safe?#
Your funds are held in on-chain vaults secured by the Solana program. The main risk is borrower default, not protocol security.
What if the protocol is hacked?#
Smart contract risk exists in all DeFi. We mitigate this through audits, conservative code, and bug bounties. However, no protocol is 100% risk-free.
How do I report a bug?#
Contact security@coalescefi.com. Do not disclose publicly.
Troubleshooting#
If a transaction fails, check the error code in the transaction details. See Error Codes for the full list with descriptions. For programmatic recovery actions, use the SDK's getErrorDetails() function.
Community#
Join the Coalesce Finance Telegram channel at t.me/coalescefi for lending opportunities and protocol updates.