Borrowing

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Quick Start: Borrow Assets

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Step 1: Select Your Loan Terms

1. Choose what to borrow: Select the asset and amount (e.g., 1,000 USDC)
2. Set your collateral: Choose the asset you’ll deposit as security (e.g., ETH)
3. Pick loan duration: 1 day, 1 week, or 1 month
4. Set interest rate: Enter your offered APY or use the market average

→ The interface will calculate your repayment total and required collateral automatically

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Step 2: Review Your Position

Check the following metrics:

• LTV Ratio: Should be in the “Safe Zone” (ideally 130-150%)
• Liquidation Threshold: The price at which your collateral gets liquidated
• Health Factor: Must stay above 1.00

→ These values update in real-time as you adjust amounts

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Step 3: Confirm Your Request

1. Click Create Borrow Request
2. Approve the transaction in your wallet

→ Your request will appear in the Markets tab as “Pending”

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Step 4: Wait for a Lender Match

Your request stays open until:

• A lender accepts your terms, OR
• You cancel the request, OR
• The expiration time is reached

→ You’ll receive a notification when a lender fills your request

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Step 5: Receive Your Funds

Once matched:

• The borrowed amount arrives in your wallet immediately
• Your collateral is locked in the smart contract
• A countdown timer shows your repayment deadline

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Step 6: Repay Before Deadline

1. Go to your Dashboard
2. Find your active loan
3. Click Repay Loan
4. Confirm the transaction

→ Your collateral is released automatically after repayment confirmation

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What Happens If You’re Late?

• Liquidation: Your collateral is sold to repay the lender + penalty fees