Here is brief flow diagram showing how loan settlements works between lenders and borrowers.
Assuming the Loan Offer was initially created by a Lender for borrowers to join.
Note: Emissions accrued claimable by the lender includes both the one accrued on the principal (while waiting to be borrowed), and on the borrowers collateral (while waiting for repayment).
Asset Vault co-opting as a decentralized escrow between the lender and borrowers.