How to Borrow Assets

Borrowing allows you to access liquidity without having to sell your current assets.

Requirement: To borrow an asset, you MUST first supply a different asset to be used as collateral.

Step-by-Step Guide

1. Launch the app and go to the Borrow tab.

2. You will see your Available to Borrow limit (which updates based on the USD value of the collateral you have supplied).

3. Select the asset you want to borrow from the market list.

4. In the Borrow Modal, enter the amount you wish to take out.

5. CRITICAL: Watch the Health Factor preview at the bottom of the modal.

   • If you borrow the maximum amount possible, your Health Factor will drop dangerously close to 1.0. We recommend keeping your Health Factor safely above 1.5 to avoid liquidation.

6. Click Borrow and sign the transaction in your wallet.

7. The borrowed tokens are instantly sent to your wallet, and a corresponding amount of DebtTokens are minted to track your liability. You will see your active loan appear under the Your Borrows section of the dashboard.