# Borrow FAQ

## How Much Can I Borrow?

The amount you can borrow depends on a variety of factors. These include the value of your supplied assets, your available credit, and the level of available liquidity in the market. If there is insufficient liquidity or if your credit limit falls below a certain threshold, borrowing will not be possible. For more detailed information about the collateral parameters, please refer to the [documentation](/moonwell/protocol-information/asset-risk-parameters.md) provided.

## Are Interest Rates Stable?

Unlike fixed-rate loans, the interest rates within the Moonwell protocol are dynamic, responding in real-time to fluctuations in market demand. Interest rate curves further define the relationship between supply, demand, and the resulting interest rate. These curves can be adjusted through governance proposals, allowing for community-driven refinements to better align with market conditions.

Due to the dynamic nature of these rates, vigilant monitoring of your available credit is essential. Failure to account for accumulating fees and fluctuating rates could jeopardize your loan, triggering a liquidation event.

## Why Can't I Borrow an Asset?

There are a few possible reasons why you may not be able to borrow a particular asset:

1. **0% collateral factor:** Each asset has a "collateral factor" that determines what percentage of the supplied asset can be borrowed against. If the collateral factor is set to 0%, borrowing is disabled to mitigate risk.
2. **Insufficient liquidity:** There is currently not enough liquidity (supplied assets) available in the market to facilitate borrowing. This can occur when the demand for borrowing an asset exceeds the total amount supplied to the market. Either wait for more liquidity to be supplied to the market, or for existing borrowers to repay a portion of their outstanding loans.
3. **Borrow Cap Reached:** Every market has a "borrow cap", which is the maximum amount that can be borrowed at a given time. If the borrow cap is reached, no further borrowing can occur. Borrow caps help ensure protocol solvency and are adjusted based on factors like liquidity and utilization rates. Wait for other borrowers to repay their loans or for the borrow cap to be increased before attempting to borrow from that market.


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