# Borrow ## Borrowing Process 1. Ensure you have deposited an asset to be used as collateral (refer to the [Deposit](broken://pages/vqBpQs1eUQLmVOpEQAR4) lateral section for further details). 2. Once collateral is in place, navigate to the Dashboard or Borrow section to check borrowing availability and yields. 3. Determine the desired borrow amount based on your available collateral balance, and proceed to confirm the transaction. Keep in mind that borrowing more will have a greater effect on your overall Health Factor (details below). ## Borrowing Limits The maximum borrowing capacity relies on the deposited asset's value and the available liquidity. If there's insufficient liquidity or if your health factor falls below a certain threshold, borrowing that asset won't be possible. The Loan-to-Value (LTV) ratio indicates the maximum borrowing potential of specific collateral. For instance, if collateral like m.USDC has an 75% maximum LTV, users can borrow up to $0.75 worth of any other token available for every $1 of m.USDC collateralized. This data is accessible by clicking on the info button for any asset on the Market page. ## Loan Repayment Process Loans do not have a set repayment period. Borrowing is indefinite as long as the position remains secure. However, loan fees accumulate over time, gradually decreasing the Health Factor (unless users take corrective action), which could potentially lead to the liquidation of deposited assets. Repayment of loans must be made with the same asset that was borrowed. For instance, if you borrowed 1 Metis, you must repay 1 METIS along with the accrued fees to settle the loan. To repay a loan, go to the Dashboard. In the "Your Borrows" section, click on "Repay" next to the asset you intend to repay. This action will open up a Repay section specific to that asset, where you can see details such as your borrowed amount, wallet balance, and Health Factor. ## What is Health Factor? The health factor is a numerical measure indicating the safety of your deposited assets relative to the borrowed assets and their underlying value. A higher value signifies a safer position for your funds against the risk of liquidation. If the health factor drops to 1, it triggers the liquidation of your deposits. ## Liquidations Liquidation is a process triggered when a borrower's Health Factor drops to 1 or lower due to insufficient collateral to cover their debt. To mitigate the risk of liquidation, borrowers can repay loans or deposit more collateral. Liquidators are sophisticated DeFi users who utilize automated systems to identify and liquidate undercollateralized positions. They interact with the protocol's contract to initiate liquidation calls, enabling them to repay a portion of the debt and receive discounted collateral as a liquidation bonus. When liquidated a user have a 15% penalty fee, 7.5% for the liquidator and 7.5% for Eris treasury. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.eris-finance.com/protocol-details/borrow.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.