Step 2: Creating contacts and labels

Set up Contacts and Labels so the LMS can recognize loan cash flows and tag them consistently. This unlocks automation later (event rules, dashboards, reconciliations).

A) Create & organize Contacts

Why: Rules can use known counterparties to auto‑label movements (e.g., borrower → lender).

Do this

1. Go to Contacts.

2. Add contacts for key counterparties: borrowers, desks, custodians, trading venues.

3. Attach addresses (multiple per contact is fine).
   Tip: Use one contact like “Borrowers – Retail” for many small addresses.

4. Open Unidentified Counterparties and assign unknown addresses to existing/new contacts.

Success check: Transactions involving those addresses now display the contact name.

B) Create Labels (with light automation)

Why: Labels add context (e.g., Principal Loan Issued, Interest Received) and drive rules, reporting, and mapping.

Where: Labels

1. Create event labels

   • Principal Loan Issued / Principal Repayment Received

   • Interest Received

   • Collateral Posted / Returned / Liquidated

   • Origination Fee / Processing Fee / Late Fee

2. Add your own labels for operational needs
   Examples: Margin Call, Collateral Top‑Up, Restructuring.

3. Automate application:

   • From/To: Choose From = lender wallet/contact, To = borrower wallet/contact → apply label (e.g., Principal Loan Issued).

   • Favorite Filter: Save a filter on Transactions (e.g., Asset = USDC, From = Lender Treasury, To = Borrower) → convert to a label rule.

Success check: New and historical matching transactions show the label count and link to view them.

Quick QA

• Transactions → Needs review → Without labels shows items still missing labels.

• Keep names simple and reusable (e.g., Interest Received – USDC only if you truly need per‑asset labels).

What’s next

Proceed to Step 3: Create loan terms.