Borrowing & Position Health

Borrow & Repay

To borrow assets, you must first provide collateral in form of supply liquidity. After you supplied your assets as collateral, navigate to the borrow section of the markets page and request a loan. After the borrow transaction confirms, the borrowed assets will be withdrawn from the pool into your wallet. Once in your wallet these assets can be transferred, bridged, sold or used freely in other protocols.

To repay your debt, navigate to the repay section of the UI, and execute a repayment transaction to the pool. You will need to repay both debt and accrued interest. You can also partially repay your debt, to increase your 'Position Health' or to withdraw only part of your collateral.

Position health

When borrowing, your debt is assigned a 'Position Health'. This is important because given the high volatility of crypto assets, you may need to manage your loan by providing additional collateral or repay parts of your loan to avoid loan liquidation. 'Position Health' shows you how close you are to a liquidation, with the lowest possible being '1' - where partial liquidations will execute. Your 'Position Health' will be gradually decreasing due to interest accrued, so always ensure you keep the 'Position Health' over 1 - either by repaying your loan partially or adding collateral.

Your debt is fully dynamic and at the mercy of market movements, thus active debt management is required to ensure safe liquidity operations.

Notes

NOTE: The maximum borrowable debt is your 'Loan-to-Value' ratio. this LTV ratio can vary depending on the asset and pool depth, always check your LTV for any asset you supply or borrow. NOTE: Any assets you borrow from the platform are somebody else's supply assets. You must repay this loan for them to be able to withdraw their supply assets again.

IMPORTANT! Borrow the maximum amount will lead to liquidations due to your collateral being immediately at risk of liquidation. To stay on the safe side limit your borrows to 50-75% of your LTV.

IMPORTANT! Collateral assets cannot be the same as borrow assets. For example, supplied USN cannot be borrowed, this also applies on cross collateral, ie supplied USDC, USDT cannot be borrowed as USDC, USDT.