# 3.3 Operator Lending Model

### 3.3 Operator Lending Model

* KYB Verification: Legal entity registration, jurisdictional compliance, beneficial ownership disclosure
* Technical Certification: Demonstrated node deployment capability and infrastructure audit
* Collateral: 150% overcollateralization in $QBT or stablecoins
* SLA Commitment: 99.5% uptime with automated penalties
* Minimum Commitment: 5 nodes per operator

#### Loan Structure

* **Tenor:** 24–36 months, aligned with hardware depreciation cycles
* **Repayment:** Automatically deducted from operator revenue share via smart contracts

#### Default Protection Waterfall

1. LTV breach detected → 24-hour cure period
2. Uncured → automatic collateral liquidation
3. Collateral shortfall → insurance fund deployed
4. Residual loss → mutualized across Vault (disclosed risk)
5. Node hardware → reassigned to backup operator pool

*Figure 3.D — Operator Unit Economics (Illustrative)*

<table data-header-hidden><thead><tr><th width="256.111083984375"></th><th width="165.888916015625"></th><th></th><th></th></tr></thead><tbody><tr><td>Metric</td><td>Conservative</td><td>Base Case</td><td>Optimistic</td></tr><tr><td>Hardware Cost (per node)</td><td>$2,800</td><td>$2,500</td><td>$2,200</td></tr><tr><td>Vault Loan (150% LTV)</td><td>$1,867</td><td>$1,667</td><td>$1,467</td></tr><tr><td>Monthly API Revenue / Node</td><td>$180</td><td>$280</td><td>$420</td></tr><tr><td>Monthly Loan Repayment</td><td>$78</td><td>$69</td><td>$61</td></tr><tr><td>Monthly Net Profit</td><td>$52</td><td>$123</td><td>$219</td></tr><tr><td>Annual Operator ROI</td><td>22%</td><td>59%</td><td>120%</td></tr><tr><td>Loan Payback Period</td><td>24 months</td><td>16 months</td><td>11 months</td></tr></tbody></table>

*Note: Illustrative estimates based on preliminary hardware pricing and demand projections. Final values to be disclosed at TGE.*

<br>

&#x20;


---

# Agent Instructions: 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:

```
GET https://railquant.gitbook.io/quantarail/3.3-operator-lending-model.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
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.