> For the complete documentation index, see [llms.txt](https://docs.brila.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.brila.finance/brila-protocol/other-concepts/other-legacy-contracts/flexible-portfolios-legacy.md).

# Flexible Portfolios \[legacy]

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For technical docs, see [Flexible Portfolio contracts](/brila-protocol/other-concepts/other-legacy-contracts/flexible-portfolios-legacy/flexible-portfolio-contracts.md)
{% endhint %}

**Flexible Portfolios** are configurable lending pools run by independent managers on TrueFi infrastructure. [Portfolio Managers ("PMs")](broken://pages/Ar3hMBb8gIk5o6COI8H7) 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="/files/5ZEk4MtOASa0ACkjoiNu" 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](/user-guide/manage/managing-kyc-kyb-requirements.md), 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)](broken://pages/Ar3hMBb8gIk5o6COI8H7) 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](broken://pages/5CJqcD2A4QIo9dR74kN0) 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.