[Lending FAQ] BORROW

  • BORROW

Q1: How to borrow?

  1. Set your supplied asset as collateral first(Turn on the collateral switch of your supplied asset on lending dashboard)
  2. Find the asset you want to borrow. You can search it or select from the category menu.
  3. Click the asset you want to borrow
  4. Type in the amount you want to borrow.
  5. Click Borrow

    Q2: How much can I borrow against my supplied asset?
    You can check https://docs.cream.finance/ for details of each collateral factor of supported assets. Plus clicking the borrow assets and then you will see Borrow Limit (in $USD value) and Borrow Limit Used information there, which showing you the current total value you can borrow.
    Reminder: Borrow Limit Used including the value of your borrowed asset along with the borrow interest.

Q3: When will liquidation occur?

When a wallet’s Borrow limit is exceeded(Borrow Limit Used over 100%), anyone can permissionlessly repay loans at a discount in return for the underlying collateral assets. (=Liquidation)
This discount incentive for the liquidators ensures that debt remains fully collateralized, reducing systemic risk.
According to the Comptroller contract, the liquidation incentive is 1.08 and the close factor is 0.5. This means that each liquidation calls can liquidate half of the collateral and the bonus liquidator can get is 8%.
Reference

  • REPAY

Q1: How to repay my debt?

  1. Click the asset you’ve borrowed.
  2. Type in the amount you want to repay or click on ‘Repay Full’.
  3. Click Repay button.

Q2: Why can’t I repay my debt? It’s showing me ‘insufficient balance’.

You don’t have sufficient balance in your wallet to repay your debt.