Borrowing

Borrowing process

borrow.mov

1. Navigate to our platform's URL using a web browser such as Google Chrome or Brave. Make sure to have Metamask or Polkadot wallet installed as a browser extension.
2. The choice between Metamask or Polkadot wallet is dependent on whether you plan to use EVM or Wasm.
3. Connect your wallet by clicking on the "Connect Wallet" button usually located at the top right corner of the page. Follow the prompts to complete the connection.
4. Choose the asset you want to collateral and click the check button just right of the asset
5. Choose the asset you want to borrow. Keep in mind the amount you can borrow is dependent on the type and amount of asset you have deposited.
6. Input the amount you wish to borrow. Make sure this amount is less than your maximum borrowing limit to avoid potential liquidation.
7. Click on the "Borrow" button and confirm the transaction in your wallet. Wait for the transaction to be confirmed on the blockchain.
8. Once the transaction is confirmed, you'll see the borrowed funds in your account.

Even If you are holding your asset without selling it out, you won't lose a chance for a capital gain. This feature allows you to borrow an asset at a low-interest rate by offering your assets as collateral.

The maximum amount that can be borrowed depends on the type and amount of asset deposited. All available collateral and specific parameters for borrowing can be found in Risk Parameters.

If you want to withdraw your deposited collateral, you need to repay the same amount and type of borrowed asset. For example, if you borrow 1 ETH, you will repay 1 ETH plus the interest accrued.

Health Factor

Health Factor(HF) is the underlying value that quantifies the safety of a deposited asset relative to a borrowed asset. The higher the value, the safer the asset status is against liquidation, seizing your collateral assets. When HF decreases and becomes less than 1, your asset may liquidate; if HF<1, the collateral value versus borrowing may be reduced by 50%. The calculation of HF depends on the liquidation threshold of your collateral and borrowed assets. All parameters for each type of asset can be found in Risk Parameters.

It's crucial to understand that failing to manage your borrowed assets appropriately could lead you towards liquidation. To learn more about how liquidation works, please refer to the **Liquidation section.**