# Earning: the Coupon River class tokens pay interest as cash coupon. This is the bond-like form of the position: principal is tracked separately, and income is paid on a schedule. ## How coupon works 1. **Entitlement accrues.** As time passes and the credit book earns interest, the servicer records the accrued income. 2. **Cash is funded.** When the servicer delivers cash to the class token, the corresponding coupon becomes claimable. 3. **Holders claim.** Each holder can claim to the receiver they choose. Coupons are distributed pro-rata to shareholders ## Why River separates principal and coupon The separation keeps the credit instrument legible: * interest is visible as income; * principal stays at par unless the class is marked up or down through settlement; * losses stay visible because they are separated from unpaid interest; * delivered coupon stays outside later principal losses. * most similar to traditional fixed income If a lender wants a single growing balance, the [accumulating wrapper](/lenders/wrapper) provides that form. ## Transfers Coupon already earned by a holder stays with that holder. A buyer of class tokens earns coupon from the point they hold the position forward. ## Example ```text A lender owns 50% of a class. During March, the class earns 30 of expected interest. The lender's accrued entitlement is 15. On April 1, the servicer funds 30 of cash. The lender can claim 15. ``` If only 24 is funded, the lender can claim 12. The remaining 3 stays unfunded.