# Flexible Portfolios \[legacy]

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For technical docs, see [flexible-portfolio-contracts](https://docs.brila.finance/brila-protocol/other-concepts/other-legacy-contracts/flexible-portfolios-legacy/flexible-portfolio-contracts "mention")
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**Flexible Portfolios** are configurable lending pools run by independent managers on TrueFi infrastructure. [Portfolio Managers ("PMs")](https://docs.brila.finance/brila-protocol/other-concepts/other-legacy-contracts/broken-reference) have discretion over loan terms, as well as other items such as the pool's maximum size, maturity date, and lender access/restrictions.

Portfolios can serve real world financing borrowers and use cases, as covered by PYMNTS [here](https://www.pymnts.com/loans/2022/mexican-fintech-uses-defi-to-provide-collateral-free-loans-to-small-businesses/), as well as crypto-focused borrowers (institutions, DAOs, etc., as covered by Bloomberg [here](https://www.bloomberg.com/news/articles/2022-02-24/one-of-biggest-crypto-traders-is-tapping-defi-loans-for-funding)).

<figure><img src="https://1577631410-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MOBxBNTVTribg0rlJSW%2Fuploads%2FgqrUEUrsqIjrQXl5Zf48%2Fimage.png?alt=media&#x26;token=4e837e7b-ed51-4cf0-bd7e-2cd678413d37" alt=""><figcaption><p>Portfolio on TrueFi</p></figcaption></figure>

### Who can lend to portfolios on TrueFi?&#x20;

Portfolio managers define who can lend into each portfolio (i.e. whether portfolios are permissioned or permissionless).&#x20;

For [permissioned portfolios](https://docs.brila.finance/user-guide/manage/managing-kyc-kyb-requirements), lenders can gain access to the portfolio by completing onboarding per the manager's instruction (ex. completing KYC process directed by the portfolio manager).

### How are portfolios managed?

[Portfolio Managers (PMs)](https://docs.brila.finance/brila-protocol/other-concepts/other-legacy-contracts/broken-reference) make decisions on underwriting loans, managing relationships with borrowers, and configuring portfolios. Lenders are responsible for conducting diligence on PMs and portfolios before lending.

### When can lenders withdraw?

Lenders can [withdraw](https://docs.brila.finance/brila-protocol/other-concepts/other-legacy-contracts/broken-reference) funds only after the portfolio's maturity date.  Funds are locked up in the portfolio until the portfolio’s maturity is reached.

### Can lenders transfer portfolio tokens?&#x20;

No, portfolio tokens are non-transferrable by default.&#x20;

Managers can enable transfers if desired.

### **What are the fees on portfolios?**

Portfolios pay a protocol fee per annum to the TrueFi DAO treasury. Fees accrue block-by-block and are paid upon each smart contract interaction (lend/withdraw/disburse loan/repay loan).&#x20;

The example below illustrates how the protocol fee works:&#x20;

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**Protocol Fee example**

Take an example portfolio *Verum Fund,* which holds 1,000,000 USDC worth of loans and assume protocol fee = 50 bps per annum (0.50%).

Assuming the value of Verum Fund grows linearly from 1,000,000 USDC to 1,100,000 USDC over the course of 30 days (avg. value of 1,050,000 USDC), the portfolio would pay a protocol fee of 431.51 USDC for this time period:

`Protocol fee = 1,050,000 USDC * 0.50% * (30/365) = 431.51 USDC`
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Additionally, PMs can set an optional Portfolio Fee. Portfolio Fees are paid to the PM, and can be configured such that they are accrued linearly over time, or paid as a flat fee at time of deposit and/or withdrawal.