# Component Layer

At the component layer, four actors interact within clearly defined boundaries:

* **HodlFi Nexus Node (Lender's Node):** Operated by the lender or pool. Manages escrow funding, repayment withdrawal, SPV verification, and hedge execution. Keys are never shared.
* **Trustless Coordinator:** Off‑chain service for assembling commitments, scripts, and proofs. It never holds funds or keys.
* **Chainlink Cosigner (Liveness Oracle):** Provides liveness only in case of unresponsiveness. It cannot move funds independently and all actions are auditable.
* **Borrower's Wallet:** The sole owner of BTC keys. Signs collateral transactions and reclaims collateral after repayment. Also initiates proof submission and repayment on the EVM side.

This structural design ensures asset custody always remains with its rightful owner (borrower for BTC, lender for stablecoins). No centralized entity or even the protocol itself can seize funds. Security comes from cryptography and economic incentives—hash locks, adaptor signatures, timelocks, and SPV proofs—rather than discretionary trust.

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<figure><img src="/files/5aIJQZUj8q9p1M29mghf" alt=""><figcaption></figcaption></figure>


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