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A borrow position pairs collateral you post with debt you draw against it. You keep exposure to the collateral (it stays yours and continues to earn its supply rate where the market pays one) while gaining the use of the borrowed asset. Each position is a distinct object with its own collateral, its own debt, and its own risk parameters inherited from the market. Positions do not cross-collateralize: a healthy position will not rescue a failing one.

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What you can draw

Your borrowing capacity is the lower of two ceilings:
  1. Your collateral’s capacity: collateral value × the market’s max borrowable LTV, less what you already owe.
  2. The market’s available liquidity: a market cannot lend what it does not hold.
Whichever binds, the platform quotes the lower figure, reduced by a 3% safety margin. That margin exists because the protocol re-checks solvency at execution against the live oracle price and against interest accrued since you opened the form; a figure at the theoretical limit would frequently be rejected on arrival. To reach the true maximum, borrow in stages.

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The four actions

Before you confirm, the form shows the position as it stands and as it would be afterward: LTV, health factor, and liquidation price on both sides. Both sides are computed from the same model, so the comparison is like-for-like. Check the projected health factor, not only the amount: it is the figure that tells you whether the action leaves usable buffer.

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Withdrawing collateral while you have debt

You can withdraw only down to the collateral your remaining debt requires, again with the 3% margin applied. With debt outstanding, expect a meaningful portion of your collateral to be locked: that is what is backing the loan. To withdraw everything, repay the debt in full first.

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Interest

Interest accrues on your debt continuously at the market’s borrow rate, which floats with utilization. It follows that:
  • Your debt grows without any action from you, so your health factor drifts down in a completely flat market.
  • Your borrow cost is not fixed. A rate that was comfortable at open can rise materially, which is what makes a leveraged yield position vulnerable. See Net APY.
There is no term and no maturity date. The position stays open until you close it or it is liquidated.

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Before you open one

Be clear on what price fall the position survives (its liquidation price), what the debt costs now and could cost at higher utilization, and how you would add collateral quickly if the market moved against you. If the answer to the last is “sell the collateral”, the position is more fragile than it appears. For the patterns institutions actually run on top of these mechanics, and the risk framework they share, see Borrowing stablecoins: strategies.