> For the complete documentation index, see [llms.txt](https://ordibank.gitbook.io/untitled/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://ordibank.gitbook.io/untitled/ordibank-protocol/component-breakdown/ordibank-network.md).

# OrdiBank Network

**Purpose**:

* The accounting layer serves as the central ledger for our protocol. It records transactions, manages loans and collateral states, and handles all cross-chain interactions efficiently and securely.

**Technical Details**:

* The accounting layer uses modules within the Cosmos SDK to track user balances, loan statuses, and collateral values. It also handles events such as loan issuances, repayments, and liquidations.

\
Example:

1. Bob takes out a loan of 5000 USDT, collateralizing 0.5 BTC.
2. The protocol locks Bob's BTC and records the loan in the ç Network ledger.
3. The ledger updates include:
   * Bob's loan amount: 5000 USDT
   * Collateral: 0.5 BTC
   * Current collateral-to-loan ratio
4. Regular updates adjust Bob's account based on the latest market data from oracles.
5. If Bob repays the loan or if a liquidation event occurs, the ledger records the transactions and updates the balances accordingly.

These detailed components work synergistically to ensure our protocol operates securely and efficiently. The use of DLCs for collateral, decentralised oracles for price accuracy, and a robust accounting layer via the Cosmos SDK are what set our platform apart in the landscape of decentralised finance.


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