Borrow FAQ
The amount you can borrow depends on various factors. These include the value of your deposited assets, your available credit, and the level of liquidity. If there is insufficient liquidity or if your health factor falls below a certain threshold, borrowing will not be possible. For more detailed information about the collateral parameters, please refer to the documentation provided.
The interest rates for borrowing are not stable and can fluctuate. They are subject to rebalancing over a longer term in response to changes in market conditions, supply and demand, overall market conditions, and other factors. As a result, the interest rates may or may not be optimal.
The interest rates are determined by the borrowing rate, which is based on the supply and demand ratio of the asset. It is important to monitor your available credit diligently. Accumulated fees from borrowing rates can increase over time and put your loan at risk of liquidation.
There are a few possible reasons why you may not be able to borrow a particular asset:
- 1.No collateral factor: This means that there is not enough liquidity on the blockchain to safely enable borrowing of the asset.
- 2.Insufficient liquidity: This means that there is currently not enough liquidity available. Waiting for more liquidity to be supplied will eventually allow you to borrow the asset.
Last modified 1mo ago