# Introduction

Cap is a credit platform backed by financial guarantees, where each loan is underwritten with escrowed collateral to secure the Lender.

The platform relies on a market of Underwriters to independently originate and insure USD loans. Underwriters put their own capital behind each delegation decision, making honest underwriting the dominant strategy. In return, Underwriters receive an underwriting premium from credit spreads. Lenders earn secured yield that is insured by Underwriter collateral, with all risk coverage transparent and enforced by smart contracts.