Borrow
Borrowing draws an asset from its market and delivers it to your XRPL wallet. The debt accrues interest at the market's borrow APY until it is repaid. Borrowing requires collateral: see Collateral.
How to borrow
- On the Markets page, hover the asset in Borrow Markets and click Borrow. You can also click Borrow on the asset's market details page.
- Enter the amount. Click the 80% safe limit value to borrow a conservative maximum: 80 % of your available borrow limit, capped by the market's available liquidity.
- Review the transaction details, the borrow limit bar and the health factor, then click Borrow ‹asset›.
- Approve the transaction in your wallet. Only the bridge fee is paid.
- The transaction tracker opens. The asset is in your wallet at Delivered to your XRPL wallet. See Transactions.
Transaction details
| Field | Description |
|---|---|
| Borrow APY | Current borrow APY of the market |
| Borrow Balance | Your total debt after the borrow, in USD |
| Borrow Limit Used | Debt divided by borrow limit, after the borrow |
| Preview | Projected preview, then On-chain preview once the protocol has confirmed the result |
| Bridge fee | Relay fee for the action, in XRP |
The borrow limit bar and the health factor below the details reflect the position after the borrow.
Requirements
- Borrow limit. The borrow must keep your debt below your borrow limit. The button is disabled at 100 % or above. From 80 %, the modal displays High utilization — liquidation risk.
- Available liquidity. The amount cannot exceed the market's available liquidity: Only x ‹asset› available to borrow.
- Price availability. If the protocol cannot price one of your markets, the borrow is blocked with Price not available yet, and the maximum is unknown. See Health factor and liquidations.
- Trust line. For an issued token, your wallet must have a trust line to the issuer with enough room for the amount. See Trust lines.
- Bridge reserve. If the bridge's delivery reserve is depleted, the borrow is blocked until it is replenished.
- Market status. Borrowing is unavailable on a market with the Borrow paused or No liquidity badge.
Interest
Interest accrues on the debt continuously. The borrow APY varies with the market's utilization rate. Your health factor decreases as interest accrues; monitor it after borrowing. See Health factor and liquidations.