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Technical FAQ

Does Moonwell charge a fee when I deposit or borrow?

No, there is no fee to deposit. The Reserve Factor is the parameter that determines the amount of borrow interest for a given asset that is routed to that asset's Reserves. The Reserves protects lenders against various shortfall events such as borrower default and liquidation malfunction.

What if I repay my loan or take out my initial deposit?

If your health goes to 1.0 (or your Borrow Limit goes to 100%), you will be liquidated. This can happen if the value of your collateral relative to your loan, decreases.

Do I lose all of my collateral when I get liquidated?

No, this is determined by an asset's Close Factor. A Close Factor of 50% means that a maximum of 50% of a liquidatable account's borrow can be repaid in a single liquidate transaction. To prevent liquidations, please repay your loans so that your borrow Health goes up.

How does interest compound or accrue?

E.g. When you lend $100 USDC, at the time of withdrawal you will have $100 + $X.XX amount extra in USDC.

I discovered a bug, where do I report it?

Please provide a submission to our Immunefi page.

Is the borrowing rate on assets variable or fixed?

The interest rate for lenders and borrowers are variable, and are determined by the Interest Rate Model.

How do I reduce gas fees while withdrawing?

Wait for lower gas periods to withdraw.

Can I borrow against a basket of assets? Or is each loan only backed by 1 type of collateral?

Yes you can use multiple assets as collateral.

Can I use the assets I deposited to pay back what I've borrowed?

No.
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