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Borrowing posts collateral and draws debt against it. Read Borrowing basics and How liquidation works before your first position.

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Opening a position

  1. Open Borrow and select the market: a collateral/debt asset pair.
  2. Check the market’s risk parameters: max borrowable LTV, liquidation threshold, borrow rate, and available liquidity.
  3. Enter the collateral you want to deposit.
  4. Enter the amount to borrow. The maximum offered already includes the 3% safety margin.
  5. Read the projection. Before confirming, the form shows the resulting LTV, health factor, and liquidation price.
  6. Approve the collateral asset if this is your first use of it in this market.
  7. Confirm in your wallet.

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Reading the projection

The projection is the most important part of the screen. Read it before you confirm:
  • Health factor: the buffer you are left with, and the number to judge the position by. Above 2.00 is conservative; 1.00 means you have borrowed the maximum the market allows, and new borrowing cannot take you below it. From there, price moves and accruing interest are what consume the buffer, and any position that falls below 0.80 is flagged At Risk.
  • Liquidation price: the collateral price at which you become liquidatable. Compare it against the current price and ask whether that distance is one you are comfortable with, given how the asset actually trades.
  • LTV: useful, but misleading in isolation. In a blue-chip market the gap between an 80% and an 85% LTV looks small and is in fact the entire distance from borrowing limit to liquidation.
If the projected health factor is not one you would hold through a volatile week, borrow less.

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Managing an open position

An open position supports four actions: deposit more collateral, borrow more, repay debt, and withdraw collateral. Each shows the same before-and-after projection. Deposit and repay improve your health factor. Borrow and withdraw worsen it.

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Monitoring

Your health factor moves without you doing anything:
  • Collateral price falls, or the debt asset appreciates.
  • Interest accrues on your debt continuously.
  • The market revises its parameters.
Interest accrual alone means a position left untouched drifts toward liquidation, so check open positions on a routine rather than only after a market move. Monitor positions and alerts sets one out.

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Closing

Repay the debt in full, then withdraw the collateral. With debt outstanding, part of your collateral stays locked as backing.

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If a transaction is refused

The most common cause is that the protocol re-checked solvency at execution and the position no longer passed, usually because the oracle price moved or interest accrued between opening the form and confirming it. Refresh and try a slightly smaller amount. A wallet-side rejection or a network fee failure leaves your position untouched. Nothing is committed until the transaction confirms onchain.