After selecting a strategy, borrowers can establish a loan within the strategy account and deploy a leveraged position. Each strategy comprises a set of predefined actions borrowers can perform with their loaned assets (e.g., Delta Neutral Funding Rate Farming). The strategy contract will continually monitor positions to ensure they adhere to the parameters of the strategy.

GoldLink currently calculates interest rates using a kinked rate-slope model. The interest rates will adjust in line with the lending pool's utilization rate.

Each GoldLink strategy has a dedicated insurance fund. The insurance fund grows by taking a percent of the borrow cost and liquidation premium, ensuring that insurance reserve size correlates with the associated strategy risk.

GoldLink has taken several steps to mitigate the risks typically associated with undercollateralized lending. Each strategy continuously tracks all loaned assets and positions, rebalancing or closing any positions that do not remain within the strategy's predefined criteria. Additionally, if a strategy account’s health score falls below the liquidation threshold, the loan will be liquidated, and lenders will be repaid using the borrower’s collateral.

In the event that borrower collateral is not able to fully cover lender capital, the insurance fund will be used to mitigate loan-loss.