Lend Borrow FAQ

Can the same collateral be used to trade perpetuals?

• Yes it can, up to the margin requirement.

How does interest get charged on borrows?

• Interest automatically accrues to the account. Interest is paid in the same currency as the currency borrowed.

Are there any fees on borrows?

• There is no borrow initiation fee.

• Each spot market takes two independent cuts off of deposit-interest gains before lenders are credited: an ifFeeFactor carveout that goes to that market’s Insurance Fund (staker-owned, see Insurance Fund), and a separate protocolFeeFactor carveout that goes to a protocol-owned, withdrawable fee pool. Lenders receive the deposit interest net of both cuts.

Are there any risks to lending?

• Yes, there is always the risk of borrower default. When there is not enough insurance available, the losses will be socialised across depositors. To help mitigate the risks, the protocol imposes prudent requirements and guards around borrows.

Where are borrows withdrawn to?

• Borrows are withdrawn to your wallet

Why can I not borrow a particular asset?

• If you’ve deposited an asset as collateral (say USDT or SOL); you can’t borrow that asset until you have fully withdrawn it from the platform.

What is the LTV limit for borrows against SOL?

• 83%

What is the initial LTV?

• 1 / initial liability weight

• For initial liability weight for listed assets, see Cross-Collateral Deposits

What is the maintenance LTV?

• 1/ maintenance liability weight

• For maintenance liability weight for listed assets, see Cross-Collateral Deposits