# Individual Creditline

Another straightforward example would be a **`creditline`** instrument that facilitates unsecured lending or loans collateralized with *any* collateral(long tail assets, NFTs, etc). Borrowers who meet the [ approval criterion](https://limitless.gitbook.io/ramm/protocol-flow/assessment-and-decision-aggregation) will be able to drawdown from this custom creditline. 

A utilizer would be a borrower, a **`longZCB`** would represent a zero coupon bond, a **`shortZCB`** would represent a credit default swap, and managers would represent credit/collateral underwriters.**`VT`** holders would represent passive investors who have invested in a senior tranche of a bundle of individual loans, but through the AMM they would have the option to hedge a loan they deem too risky, or be more exposed to a loan they deem less risky.  

During the duration of the loan, LPs can also buy **`shortZCB`** if they a) decide that the borrower is too risky and b) find a counterparty willing to buy **`longZCB`** 

### Assessment

During assessment, as the loan is fixed term fixed rate, managers will be able to buy **`longZCB`** at a price less than 1 and redeem it at 1 at maturity. In cases where the borrower makes a prepayment, redemption prices would be set such that the generated yields are simply socialized by all **`longZCB`** holders. 

How does this relate to a [Conditional LendingPool](https://limitless.gitbook.io/ramm/instrument-examples-and-usage/conditional-lending-pool-clp)(CLP)? In CLPs, a borrower would be able to take a loan out instantly from the pool, if one of the pools in the protocol supports the collateral/condition of the borrower *or* the borrower's loan principal is under a threshold. If else, the borrower would have to propose an individual **`creditline`**  where the managers will assess and buy **`longZCB`** on a case-by-case basis

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