> For the complete documentation index, see [llms.txt](https://docs.florence.finance/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.florence.finance/docs/protocol-overview/how-it-works/primary-funding.md). # Primary Funding Of course, flrEUR and Loan Vault tokens must be created before they can be made available for sale in the secondary market (to solve the well-known “chicken/egg” problem). This is facilitated by whitelisted parties (Primary Funders) that can deposit stablecoins (USDC/EURS/EURA/EURC) directly into open funding requests in the Loan Vaults. To become a whitelisted funder, parties must be willing & able to fund larger amounts (>EUR 100k) and provide KYC & AML-related documentation (see [here](https://florence.finance/lend/)). In return for such primary funding commitments, parties receive Loan Vault Tokens (“receipt” tokens). These receipt tokens are received directly in their funding wallet and can be exchanged (through the Loan Vault exchange function) for flrEUR tokens which is the unit of account for the Florence Finance protocol at any point in time. The amount of Loan Vault tokens received will always correspond (1:1) to the amount contributed to the open funding request such that the total amount of outstanding Loan Vault Tokens and flrEUR are always 100% backed by the outstanding principal amount (in EUR) of underlying/performing loans (collateral) and accrued interest. Whereas the Loan Vault Tokens accrue a proportional share of the interest generated by the loans underlying a Loan Vault, the flrEUR tokens can be used to exchange Loan Vault exposure; 1) back to Stablecoins, 2) switch exposure from one LoanVault to another, or 3) to earn FFM rewards through the flrEUR staking pool. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.florence.finance/docs/protocol-overview/how-it-works/primary-funding.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.