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Original file line number Diff line number Diff line change
Expand Up @@ -12,7 +12,7 @@ Where to ask questions, follow announcements, file issues, or reach the team abo

| Purpose | Where to go | Link |
| --- | --- | --- |
| General questions, chat with the community, get help while using the Aave v4 Lending Dashboard | Discord | [discord.gg/qwTzSmtP](https://discord.gg/qwTzSmtP) |
| General questions, chat with the community, get help while using the TBV Testnet app | Discord | [discord.gg/qwTzSmtP](https://discord.gg/qwTzSmtP) |
| Announcements, release notes, status updates | Twitter / X | [@babylonlabs_io](https://x.com/babylonlabs_io) |
| Real-time chat (alternative to Discord) | Telegram | [t.me/babyloncommunity](https://t.me/babyloncommunity) |
| Source code, issue tracker, SDK | GitHub | [github.com/babylonlabs-io](https://github.com/babylonlabs-io) |
Expand All @@ -21,7 +21,7 @@ Where to ask questions, follow announcements, file issues, or reach the team abo

## Where to ask what

* **Stuck mid-flow on the Aave v4 Lending Dashboard:** Discord, in the Testnet support channel
* **Stuck mid-flow on the TBV Testnet app:** Discord, in the Testnet support channel
* **Found a bug in the UI or contracts (non-security):** open an issue on GitHub
* **Question about how something works conceptually:** start with [Quickstart](/trustless-bitcoin-vault/use-for-lending/quickstart/) and [TBV vs alternatives](/trustless-bitcoin-vault/start-here/tbv-vs-alternatives/), then ask in Discord
* **Lost your WOTS keypair and claimer artifacts:** if the Vault Provider for that vault is also unresponsive, contact the team to initiate Security Council recovery. See [Withdraw & redeem](/trustless-bitcoin-vault/use-for-lending/withdraw-and-redeem/) for the self-claim path's input requirements
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2 changes: 1 addition & 1 deletion docs/trustless-bitcoin-vault/reference/glossary.mdx
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Expand Up @@ -70,7 +70,7 @@ borrows. See

**Depositor.** The Bitcoin holder who creates a vault to use BTC as collateral.
The depositor's keys are required at vault creation and at every
depositor-controlled release path. In lending contexts, the depositor is also
depositor-controlled release path. In borrowing workflows, the depositor is also
the borrower.

**Depositor claim output.** A small Bitcoin output produced by the PegIn
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4 changes: 2 additions & 2 deletions docs/trustless-bitcoin-vault/start-here/how-it-works.mdx
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Expand Up @@ -36,7 +36,7 @@ Two safety properties are built into the peg-in flow:

## Activating a vault as collateral in Aave v4

An active vault is automatically supplied as collateral on the application chosen at peg-in. On activation, the BTC Vault Manager notifies the Aave v4 Adapter. The adapter mints an internal accounting token (**vaultBTC**) for the vault's BTC amount and supplies it to the **Babylon Core Spoke**, the dedicated Aave v4 market that accepts vaultBTC as collateral. The vault is appended to the depositor's lending position; subsequent activations add to the same position.
An active vault is automatically supplied as collateral on the application chosen at peg-in. On activation, the BTC Vault Manager notifies the Aave v4 Adapter. The adapter mints an internal accounting token (**vaultBTC**) for the vault's BTC amount and supplies it to the **Babylon Core Spoke**, the dedicated Aave v4 market that accepts vaultBTC as collateral. The vault is appended to the depositor's borrowing position; subsequent activations add to the same position.

A BTC vault is created for one specific application at peg-in and cannot be moved between applications later. The protocol is designed to support multiple applications, but each requires its own adapter and its own vaults; integration is not "out of the box".

Expand All @@ -56,7 +56,7 @@ With a single-vault position, any liquidation seizes the whole collateral backin

When a depositor is done with a vault, or when liquidation triggers, the vault enters the redemption flow on Bitcoin. The Bitcoin side knows only "redeem": the application layer translates withdrawal after repayment or liquidation into the redeem call. There are two main paths and one safety fallback.

**Path 1: withdrawal after repayment.** After repaying the loan, the depositor withdraws the vault from the lending position. This burns the corresponding vaultBTC and triggers vault redemption on the Bitcoin side. The protocol contracts emit a redemption event for the depositor to withdraw the vault on Ethereum, the Vault Provider submits a claim transaction on Bitcoin, and after the challenge period ends, the BTC is released to the depositor's Bitcoin address (minus the Vault Provider's commission).
**Path 1: withdrawal after repayment.** After repaying the debt, the depositor withdraws the vault from the borrowing position. This burns the corresponding vaultBTC and triggers vault redemption on the Bitcoin side. The protocol contracts emit a redemption event for the depositor to withdraw the vault on Ethereum, the Vault Provider submits a claim transaction on Bitcoin, and after the challenge period ends, the BTC is released to the depositor's Bitcoin address (minus the Vault Provider's commission).

**Path 2: liquidation.** If the position's health factor drops below 1.0, anyone can call the liquidation function on Ethereum. The liquidator repays part of the debt and the protocol seizes the necessary vaults. The seized vaults then enter the same redemption flow, with the claimer being a registered Application Vault Keeper (an arbitrageur in the Aave integration) who may or may not also be the liquidator that triggered the seizure. The over-seized value is returned to the depositor either as additional debt repayment on their behalf (the common case during partial-position liquidation) or, on full-position liquidation when all debt is covered, paid in WBTC. See [Liquidation risk](../use-for-lending/liquidation-risk.mdx).

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