> ## Documentation Index
> Fetch the complete documentation index at: https://docs.axiosfinance.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Lending

> Step-by-step guide to earning fixed yields on Axios

## Quick Start: Lend Assets

### Step 1: Create Your Loan Offer

1. **Choose what to lend**: Select the asset and amount (e.g., 1,000 USDC)
2. **Set repayment amount**: Specify what you want back (e.g., 1,100 USDC = 10% interest)
3. **Pick loan duration**: 1 day, 1 week, or 1 month
4. **Set collateral requirement**: Choose the minimum LTV ratio (recommended: 150%)

→ *The interface will display your effective APY based on these inputs*

### Step 2: Review Your Offer

Verify:

* **Your APY**: Is it competitive with current market rates?
* **Collateral ratio**: Higher = safer, but may take longer to match
* **Duration**: Shorter terms = faster turnaround, but more management

→ *Browse the Markets tab to see what other lenders are offering*

### Step 3: Confirm Your Offer

1. Click **Create Lend Offer**
2. Approve the transaction in your wallet

→ *Your funds are locked immediately and your offer appears in the Markets tab*

### Step 4: Wait for a Borrower Match

Your offer stays active until:

* A borrower accepts your terms, OR
* You cancel the offer and withdraw funds, OR
* The expiration time is reached

→ *You'll receive a notification when a borrower fills your offer*

### Step 5: Earn Fixed Returns

Once matched:

* Your repayment amount and date are locked
* The borrower's collateral is held in escrow
* A countdown timer shows when you'll be repaid

→ *No action needed during the loan period*

### Step 6: Receive Repayment

On the repayment date:

* Funds arrive in your wallet automatically
* The protocol fee (5% during beta) is deducted from your interest earnings
* Your net profit is displayed in your Dashboard

→ *Repayment is fully automated; you don't need to claim or approve anything*

***

## What If the Borrower Doesn't Repay?

Your funds are protected by over-collateralization:

1. **Grace period expires**: 12-24 hours after the deadline
2. **Liquidation triggered**: Anyone can liquidate the borrower's collateral
3. **You receive**: Principal + 2% liquidation bonus
4. **Settlement**: Happens automatically via smart contract

<Tip>
  The higher collateral ratio you require (e.g., 150% vs 120%), the safer your position is against market volatility.
</Tip>

***

## Maximizing Your Returns

* **Browse requests first**: Borrowers often post requests with higher APY than typical offers
* **Adjust for risk**: Require 150%+ collateral for volatile assets like ETH
* **Diversify durations**: Mix short-term (1-7 days) and longer loans (30 days)