# Borrowing
Source: https://docs.axiosfinance.xyz/concepts/borrowing

Step-by-step guide to borrowing assets on Axios

## Quick Start: Borrow Assets

<img alt="Borrow Interface" />

### 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*

### 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*

### Step 3: Confirm Your Request

<Warning>
  Your collateral can be liquidated if its value drops significantly. [Learn more about liquidation risk](collateral-and-liquidation)
</Warning>

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

→ *Your request will appear in the Markets tab as "Pending"*

### 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*

### 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

### 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*

***

## What Happens If You're Late?

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

<Tip>
  Set calendar reminders 24-48 hours before your repayment deadline. You can repay early at any time.
</Tip>


# Collateral & Liquidation
Source: https://docs.axiosfinance.xyz/concepts/collateral-and-liquidation

Understanding how Axios protects lenders

## What Is Collateral?

**Collateral is like a security deposit.**

When you borrow, you must put up more value than you're borrowing. This protects the lender.

**Example:**

* You borrow: \$10,000 USDC
* You put up: \$15,000 worth of ETH

If you don't pay back the loan, the lender gets your ETH. This is why lenders are willing to lend to strangers on the internet.

## What Is Liquidation?

**Liquidation is when your collateral gets automatically sold to repay the lender.**

This happens in two situations:

### Situation 1: You Miss Your Repayment Deadline

If you borrow for 30 days and don't pay back within 12-24 hours after the deadline, anyone can trigger a liquidation. Your collateral is sold, the lender gets paid, and you lose your collateral.

### Situation 2: Your Collateral Value Drops

Crypto prices are volatile. If you put up $15,000 of ETH as collateral, but ETH crashes and your collateral is now only worth $11,000, it's not enough to cover the \$10,000 loan anymore.

**When collateral drops too much, liquidation happens automatically.**

**Real Example:**

* You borrow: 10,000 USDC
* You put up: 15,000 USDC worth of ETH (1.5x collateral ratio)
* ETH price drops 30%
* Your ETH is now worth: 10,500 USDC
* This triggers liquidation (you're below the safety threshold)

**What happens in a liquidation:**

* Your ETH collateral gets sold
* Lender receives: 10,200 USDC (their 10,000 + 2% bonus)
* Person who executed liquidation: 70 USDC (0.7% fee)
* Axios protocol: 30 USDC (0.3% fee)
* You receive: Whatever is left (roughly 200 USDC in this example)

> \[!WARNING]
> Keep your collateral healthy. If it drops too much, you lose it.


# Lending
Source: https://docs.axiosfinance.xyz/concepts/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)


# Introduction
Source: https://docs.axiosfinance.xyz/introduction

Lock In Your Rate. Lend or Borrow on Your Terms.

# What Is Axios Finance?

Axios Finance is a lending platform where you can borrow or lend cryptocurrency directly with other people. Think of it like Craigslist for crypto loans - you post what you want, negotiate terms with another person, and the code automatically enforces your agreement.

## Three Key Differences

1. **Fixed Rates**: You lock in your interest rate upfront. It won't change, no matter what happens in the market.
2. **Direct Matching**: You're matched with one other person, not lending to a shared pool of money.
3. **Custom Terms**: You choose your own loan duration, interest rate, and collateral amount.

## Why Does This Matter?

### The Problem with Current Crypto Lending

Most crypto lending platforms (like Aave or Compound) work like this:

* Everyone deposits money into one big shared pool
* Interest rates change constantly based on supply and demand
* You might start earning 5% APY, but wake up tomorrow earning 2%
* This unpredictability makes planning impossible

### How Axios Solves This

Imagine you're lending \$10,000 and want to earn exactly 10% over 90 days. On Axios:

1. You post your offer: "I'll lend $10,000 USDC for 90 days, you pay me back $10,250"
2. A borrower accepts your terms
3. The interest rate is locked - you'll earn exactly \$250, guaranteed
4. After 90 days, you get your money back plus interest

**No surprises. No rate changes. Just predictable returns.**


# Litepaper
Source: https://docs.axiosfinance.xyz/litepaper

The comprehensive guide to Axios Finance

# Executive Summary

Axios Finance is a **peer-to-peer lending protocol** built on the Fuel Network that enables users to borrow and lend cryptocurrency with **fixed interest rates** and **custom terms**. Unlike traditional DeFi lending pools where rates fluctuate based on utilization, Axios matches borrowers directly with lenders, ensuring both parties know their exact returns or costs upfront.

## The Problem: Unpredictable DeFi Lending

Current crypto lending platforms like Aave and Compound operate on a **shared pool model**:

* Interest rates change constantly based on supply and demand
* A lender earning 5% APY today might earn 2% tomorrow
* Borrowers face the same uncertainty with loan costs
* **Planning is impossible when rates are unpredictable**

> \[!IMPORTANT]
> Variable rates create uncertainty. You can't plan your finances when your costs or returns change daily.

## The Solution: Fixed-Rate Peer-to-Peer Lending

Axios introduces a fundamentally different approach:

| Feature            | Axios (Fixed P2P)    | Pool-Based (Aave/Compound) |
| ------------------ | -------------------- | -------------------------- |
| **Rate Stability** | ✅ Locked at creation | ❌ Changes constantly       |
| **Custom Terms**   | ✅ Full control       | ❌ Standardized             |
| **Counterparty**   | One matched user     | Shared pool                |
| **Risk Isolation** | ✅ Independent loans  | ❌ Pool-wide exposure       |
| **Predictability** | ✅ Known outcomes     | ❌ Variable returns         |

## Core Mechanisms

### Collateralization

All loans are **over-collateralized** to protect lenders:

* **Conservative**: 150% (borrow $10k with $15k collateral)
* **Moderate**: 130% (borrow $10k with $13k collateral)
* **Risky**: 120% (borrow $10k with $12k collateral)

Higher collateral = safer for lenders = potentially lower interest rates.

### Liquidation

Liquidation protects lenders when loans become unsafe:

**Trigger Conditions:**

1. **Missed Repayment**: Loan expired without repayment
2. **Collateral Value Drop**: Below safety threshold (if enabled)

**Liquidation Distribution:**

| Recipient  | Amount               |
| ---------- | -------------------- |
| Lender     | Principal + 2% bonus |
| Liquidator | 0.7% of collateral   |
| Protocol   | 0.3% of collateral   |
| Borrower   | Remaining balance    |

### Oracle Integration

Axios uses **Stork oracles** for real-time price data:

* Continuous price updates
* Multiple data sources aggregated
* Fair liquidation price determination

## Fee Structure

### Protocol Fee: 10% of Interest (5% During Beta)

**Example Transaction:**

* **Borrower requests**: 10,000 USDC
* **Repayment amount**: 11,000 USDC
* **Interest generated**: 1,000 USDC

**Distribution:**

* **Lender receives**: 10,900 USDC
* **Protocol fee**: 100 USDC (10% of interest)
* **Borrower total cost**: 11,000 USDC

> \[!NOTE]
> Fees are calculated on interest only, never on principal. This is significantly lower than the spread on traditional lending platforms.

## Use Cases

### Scenario 1: The Crypto Holder

**Sarah's Situation:**

* Owns 10 ETH worth \$35,000
* Needs \$20,000 for a business opportunity
* Believes ETH price will rise

**Axios Solution:**

1. Borrows 20,000 USDC for 90 days
2. Deposits 8 ETH (\$28,000) as collateral
3. Agrees to repay 21,000 USDC (5% interest)
4. Uses funds for business
5. Repays and retrieves ETH

**Result:** Maintained ETH exposure + accessed capital for only \$1,000 in interest.

### Scenario 2: The Yield Seeker

**Michael's Situation:**

* Has 50,000 USDC sitting idle
* Wants predictable returns
* Uncomfortable with variable rates

**Axios Solution:**

1. Creates loan offer: 50,000 USDC for 30 days
2. Requires 150% collateral ratio
3. Demands 50,500 USDC repayment (12% APY)
4. Receives repayment after 30 days
5. Earns 450 USDC net profit (after 50 USDC fee)

**Result:** Earned 10.8% APY net with strong collateral protection.

## Technical Architecture

### Built on Fuel Network

| Aspect                      | Details                                    |
| --------------------------- | ------------------------------------------ |
| **Network**                 | Fuel - High-performance modular blockchain |
| **Transaction Fees**        | \$0.01-0.50 per transaction                |
| **Confirmation Time**       | Seconds                                    |
| **Smart Contract Language** | Sway                                       |
| **Toolchain**               | Forc 0.69.1                                |

**Why Fuel?**

* Low transaction costs for accessible lending
* Fast execution for real-time matching
* Modern architecture built for efficiency

## Security Model

**Key Security Features:**

* **Open Source**: All contracts publicly auditable
* **Automated Enforcement**: No human intervention possible
* **Isolated Positions**: Your loan is independent of others
* **Oracle Redundancy**: Multiple price sources (planned)

## Risk Disclosure

### For Borrowers

| Risk                 | Mitigation                              |
| -------------------- | --------------------------------------- |
| **Liquidation**      | Use 150%+ collateral ratios             |
| **Price Volatility** | Set price alerts, monitor health factor |
| **Deadline Miss**    | Set reminders, repay early if volatile  |

### For Lenders

| Risk                     | Mitigation                            |
| ------------------------ | ------------------------------------- |
| **Capital Lock-up**      | Only lend funds not needed short-term |
| **Counterparty Default** | High collateral requirements          |
| **Extreme Market Crash** | Require higher LTV ratios             |

### Protocol Risks

| Risk                    | Status                                   |
| ----------------------- | ---------------------------------------- |
| **Smart Contract Bugs** | Audits pending, start with small amounts |
| **Oracle Failure**      | Multiple oracle sources planned          |
| **No Insurance Fund**   | Users bear all risk currently            |

> \[!CAUTION]
> Axios Finance is experimental software. Never invest more than you can afford to lose.

## Roadmap

### ✅ Current (Beta Phase)

* Core lending and borrowing
* Fixed-rate peer-to-peer matching
* Automated liquidations
* Stork oracle integration
* Reduced protocol fee (5%)

### 🔄 Coming Soon

* **Passive Vaults**: where users can deposit and forget and that would be used to facilitate loans on chain by vault managers
* **Secondary Market**: Sell loan positions before maturity
* **Multi-Collateral**: Combine assets to reduce liquidation risk
* **Partial Fills**: Multiple lenders for large requests
* **Advanced Analytics**: Risk scoring and performance tracking

## Getting Started

### Prerequisites

1. Fuel-compatible wallet (Fuel Wallet browser extension)
2. Crypto assets (to borrow against or lend)
3. Basic understanding of collateral and liquidation

### Quick Start Guide

**For Borrowers:**

1. Connect wallet → Click "Borrow"
2. Select asset, amount, and collateral
3. Choose duration and confirm terms
4. Wait for lender match
5. Receive funds → Repay before deadline

**For Lenders:**

1. Connect wallet → Click "Lend"
2. Browse requests or create offer
3. Set terms and required collateral
4. Wait for borrower match
5. Receive repayment automatically


# Fees
Source: https://docs.axiosfinance.xyz/protocol/fees

Understanding Axios Finance fee structure

## For Borrowers: Pay What You Negotiate

Interest is negotiated between you and the lender. Axios doesn't set rates - the market does.

**Protocol Fee:** 10% of the interest (5% during beta)

**Example:**

* You borrow: 10,000 USDC
* You repay: 11,000 USDC
* Interest paid: 1,000 USDC
* Axios takes: 100 USDC (10% of the 1,000 interest)
* Lender receives: 10,900 USDC
* Your total cost: 1,100 USDC

**The fee only applies to interest, never to the principal you borrowed.**

## For Lenders: Earn What You Negotiate (Minus Small Fee)

**Protocol Fee:** 10% of your interest earnings (5% during beta)

**Example:**

* You lend: 10,000 USDC
* Borrower repays: 11,000 USDC
* Your gross earnings: 1,000 USDC interest
* Axios takes: 100 USDC (10% of interest)
* You receive: 10,900 USDC
* Your net profit: 900 USDC

**This is far lower than most platforms' spread between lending and borrowing rates.**


# Roadmap
Source: https://docs.axiosfinance.xyz/protocol/roadmap

Future plans for Axios Finance

### Current (Beta Phase)

* ✅ Core lending and borrowing
* ✅ Fixed-rate peer-to-peer matching
* ✅ Automated liquidations
* ✅ Stork oracle integration
* ✅ Reduced protocol fee (5% vs 10%)

### Coming Soon

* 🔄 **Passive Vaults**: where users can deposit and forget and that would be used to facilitate loans on chain by vault managers
* 🔄 **Secondary Market**: Ability to sell your loan position to someone else before maturity. This solves the lock-up problem for lenders.
* 🔄 **Multi-Collateral Loans**: Put up multiple assets as collateral (e.g., ETH + BTC + USDC) to reduce liquidation risk.
* 🔄 **Partial Loan Fills**: Large loan requests can be filled by multiple lenders, improving matching efficiency.
* 🔄 **Advanced Analytics**: Risk scoring, historical rate data, and loan performance tracking.


# Technology
Source: https://docs.axiosfinance.xyz/protocol/technology

Built on Fuel Network

## Technical Overview

### Built on Fuel Network

**What is Fuel?**
Fuel is a high-performance blockchain designed for speed and low costs. Think of it as a faster, cheaper alternative to Ethereum.

**Why Fuel?**

* **Low transaction fees**: Creating and managing loans costs cents, not dollars
* **Fast execution**: Transactions confirm in seconds
* **Modern architecture**: Built from the ground up for efficiency

### Smart Contract Details

* **Language**: Sway (Fuel's smart contract language)
* **Toolchain**: Forc 0.69.1
* **Architecture**: Isolated peer-to-peer markets
* **Security**: Code is open-source and auditable

### Price Data (Oracles)

* **Provider**: Stork
* **Function**: Provides real-time asset prices for liquidation calculations
* **Update Frequency**: Continuous
* **Reliability**: Multiple data sources aggregated


# FAQ
Source: https://docs.axiosfinance.xyz/resources/faq

Frequently Asked Questions

<AccordionGroup>
  <Accordion title="How does borrowing work?">
    Borrowers create a loan request with their desired terms. Lenders review and fill these requests, after which the borrower receives the asset and must repay within the agreed duration.
  </Accordion>

  <Accordion title="How does lending work?">
    Lenders can browse open loan requests and choose the ones that fit their risk and return preferences. Once a loan is funded, the borrower receives the funds and must repay according to the selected terms.
  </Accordion>

  <Accordion title="Are there risks?">
    As with any lending market, there is default risk. If a borrower fails to repay on time, the position can be liquidated and collateral is used to cover the obligation as much as possible.
  </Accordion>

  <Accordion title="Which assets and markets are currently supported?">
    Axios currently supports six core markets: FUEL, USDC, stFUEL, ETH, ezETH, and USDT. These assets provide users with diverse lending and borrowing options across native Fuel tokens, stablecoins, and Ethereum-based assets.
  </Accordion>

  <Accordion title="What are Earn Vaults?">
    Earn Vaults are set‑and‑forget strategy vaults: you deposit once, and the vault automatically allocates your capital into lending strategies managed by Axios. The protocol actively manages loans and reinvests proceeds on your behalf to seek sustainable yield without requiring you to monitor individual positions.
  </Accordion>

  <Accordion title="Can I repay my loan early?">
    Yes! You can repay anytime before the deadline. Your collateral is returned immediately.
  </Accordion>

  <Accordion title="What happens if I'm 1 hour late on repayment?">
    After the loan expires, anyone can liquidate your position immediately.
  </Accordion>

  <Accordion title="Can I add more collateral to avoid liquidation?">
    Not currently, but this feature is planned. For now, you must repay the entire loan to get collateral back.
  </Accordion>

  <Accordion title="What if there are no lenders for my terms?">
    Your request stays open for the full duration you specified. You can cancel it anytime before someone fills it. Try adjusting your interest rate or collateral ratio to attract lenders.
  </Accordion>

  <Accordion title="Is my money safe?">
    Axios uses smart contracts to hold funds - no human can access them. However, all DeFi involves risk. Never invest more than you can afford to lose.
  </Accordion>
</AccordionGroup>


# Glossary
Source: https://docs.axiosfinance.xyz/resources/glossary

Key terms in Axios Finance

| Term                              | Definition                                                                                                                                          |
| --------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------- |
| **APY (Annual Percentage Yield)** | The yearly return on an investment, accounting for compounding. A 10% APY means you earn 10% per year.                                              |
| **Blockchain**                    | A network of computers that maintains a shared, tamper-proof record of transactions. Think of it as a public ledger that no single person controls. |
| **Collateral**                    | Assets you put up as security for a loan. If you don't repay, the lender gets your collateral.                                                      |
| **DeFi (Decentralized Finance)**  | Financial services built on blockchains without traditional intermediaries like banks.                                                              |
| **Gas Fee**                       | The cost to execute transactions on a blockchain. These fees pay for computing power and network security.                                          |
| **Liquidation**                   | The automatic sale of collateral when a loan becomes unsafe. Protects lenders from losses.                                                          |
| **Liquidity**                     | How easily an asset can be converted to cash. High liquidity = easy to buy/sell. Low liquidity = hard to trade.                                     |
| **Oracle**                        | A service that provides external data (like prices) to smart contracts on the blockchain.                                                           |
| **Over-collateralized**           | Putting up more collateral value than you're borrowing. E.g., borrowing $10k with $15k collateral.                                                  |
| **P2P**                           | Direct transactions between two people without a middleman. Axios matches borrowers directly with lenders.                                          |
| **Smart Contract**                | Self-executing code on a blockchain. Like a vending machine - it follows rules automatically without human intervention.                            |
| **Stablecoin**                    | Cryptocurrency designed to maintain a stable value (usually \$1). Examples: USDC, USDT, DAI.                                                        |


# Rewards
Source: https://docs.axiosfinance.xyz/resources/rewards

Earn rewards for participating in Axios Finance

# Rewards

Coming Soon