Borrow

Borrow in Advanced

Open Liquidium and select Advanced, then Borrow. Sign in with Internet Identity or a supported wallet to manage your Advanced balances and positions.

Advanced borrowing uses eligible assets already supplied to Liquidium as collateral. If you do not have an active supply position, start with Supply.

If you want a one-step loan without signing in, use Simple Loan.

Before borrowing, keep in mind:

• The maximum amount depends on your collateral, portfolio health, pool liquidity, and current market limits.
• Borrow APY is variable and can change with utilization and market conditions.
• Borrowing adds debt and lowers portfolio health.
• The app shows the network fee and estimated amount delivered before confirmation.

Submit a borrow

1. Open Advanced and select Borrow.
2. Choose a supported asset from the asset picker.
3. Enter an amount or use Max and the percentage slider.
4. Review the current and projected borrow APY, portfolio health, available liquidity, and network fee.
5. Select Borrow.
6. Follow the authorization and destination steps shown by the app. With a connected Ledger Bitcoin account, use the borrow destination/address flow shown by Liquidium and complete required approvals or signatures in the Ledger Live app.

Depending on the selected asset and current flow, borrowed funds may be delivered to a supported linked wallet or a compatible destination address. Follow the delivery method shown for that transaction.

To use Oisy with ICP assets, first connect Oisy to Liquidium through its Ethereum account. Then open Settings and connect the ICP account. Once linked, you can use that ICP account for supported supply, borrow, repay, and withdrawal transactions. ICP and ckAssets are then shown by default in the asset picker; turn off ICP assets to switch back to native-chain assets. See ICP assets and Oisy for supported asset settings and address formats.

Native ETH destination: Native ETH must be sent to a standard Ethereum wallet address. Smart contract wallet addresses are not supported.

Track a pending borrow

During submission, the progress window shows stages such as Fetching details, Approve borrow, and Processing borrow.

The success screen shows the borrowed asset, amount, estimated completion time, and transaction link. Timing varies by asset, destination network, and current conditions, so use the live estimate instead of relying on a fixed confirmation time.

Once the borrow is initiated, the debt can appear in your Advanced Portfolio and affect portfolio health before the outbound transfer reaches its destination. Interest begins accruing when the debt position becomes active.

Try it in Demo Mode

Use Demo Mode to test supplying, borrowing, and repaying with simulated funds. Demo Mode does not require a real wallet transaction or real assets.

Turn Demo Mode off before using real funds. Demo balances and transactions do not carry over to your real profile.

How borrowing works

Advanced borrowing uses eligible supplied assets as collateral. Borrowers receive liquidity from supported pools and repay the borrowed amount plus accrued interest.

Advanced borrows are over-collateralized. If collateral value falls or debt grows enough to reach the liquidation threshold, the position can be liquidated to help keep the lending pool solvent.

Understand your borrow terms

• Borrow APY is variable and can change over time.
• Interest accrues while the debt remains outstanding.
• Advanced borrows do not have a fixed repayment date. You can make partial or full repayments.
• The outbound network fee is shown before confirmation and may be deducted from the delivered amount.
• Available liquidity and market limits can reduce the maximum amount below your collateral-based borrowing capacity.
• A position can be liquidated if portfolio health reaches the liquidation threshold.

Manage a borrowed position

Open Advanced, then Portfolio. The Borrowed section shows each borrowed asset, current debt, borrow APY, and accrued interest.

Expand a borrowed asset to choose Repay or Borrow more. Borrowing more increases debt and lowers portfolio health. Repaying debt improves portfolio health after the repayment becomes active.

See Repay for the repayment flow.

Understanding portfolio health

When you borrow against your collateral, it's crucial to understand your portfolio health to see your borrowing capacity and avoid liquidations.

What is liquidation

Liquidation occurs when your borrowing position's health factor becomes too low. When this occurs:

• Automated bots may step in to repay part of your debt
• In return, they receive some of your collateral at a discount
• This mechanism helps maintain protocol stability, though it is generally unfavorable for the borrower

Liquidations are a safety mechanism: if the value of your collateral falls too far relative to your borrowed amount, the protocol acts to protect itself and other users.

Health factor explained

Your portfolio health is measured by a Health Factor - a simple number that tells you how safe your borrowing position is:

The UI displays the portfolio health as a percentage, where:

• 100%: No debt - you haven't borrowed anything
• Above 0% to 99%: Your position is safe from liquidation - the higher the percentage, the safer you are
• Close to 0%: You're at risk - the closer to 0%, the higher the liquidation risk
• 0%: Your position can be partially liquidated

A decimal Health Factor of 2.0 is the same as 50% Health in the default UI. A decimal Health Factor of 1.0 is 0% Health and means the position is at the liquidation threshold.

For the full conversion table, see Health Factor.

What affects your health factor?

Your Health Factor depends on several key factors:

1. Collateral Value

• The total USD value of all assets you've supplied to the protocol
• This changes as asset prices fluctuate

2. Debt Value

• The total USD value of everything you've borrowed
• Includes interest that accumulates over time

3. Liquidation thresholds

• Each asset has a different risk level called a "liquidation threshold"
• This percentage determines how much you can safely borrow against that asset
• For example, if Bitcoin has a 74% liquidation threshold, your borrowing power is based on that 74% limit
• These thresholds reflect how volatile and liquid each asset is

In this example, borrowing 147.88 USDT increases the borrowing APY from 0.967% to 4.128%, lowers portfolio health from 71.1% to 69.4%, and increases the position balance from $2,500 to $2,647.88.

Weighted liquidation thresholds

When you have multiple types of collateral, the protocol calculates a weighted average of all your liquidation thresholds.

Current market values can change, so always check the latest values on the Insights page.

This weighted threshold is then used to calculate your overall portfolio health.

Click the pie chart icon next to the Borrowed title on the Portfolio tab to open the details modal for weighted liquidation threshold and related risk values.

Managing liquidation risk

How much can be liquidated?

Liquidation only occurs when your Health Factor reaches 0% or below. However, the amount that can be liquidated depends on your debt to collateral ratio:

• Health Factor at or above -5% : Up to 50% of a position's debt can be liquidated
• Health Factor below -5% : Up to 100% of a position's debt can be liquidated, effectively closing the position

Protecting yourself

To reduce liquidation risk:

1. Monitor portfolio health regularly, especially during volatile market conditions.
2. Keep a buffer instead of borrowing the maximum available amount.
3. Add more eligible collateral if portfolio health drops.
4. Repay debt to improve the position. See Repay.
5. Set up alerts for supported health and activity events. See Profile notifications.

Notifications are useful, but you should still monitor the position directly in the app.

Example scenario

Let's say you:

• Supply $15,000 worth of Bitcoin and Ethereum
• Borrow $6,000 in USDT
• Have a weighted liquidation threshold of 74%

Your Health Factor would be 1.85:

This means you're in a safe position. To find at what price you'd be exposed to liquidation, you can calculate:

Liquidation occurs when:

In this example:

• Current collateral: $15,000
• Debt: $6,000
• Weighted threshold: 74%
• Liquidation point:

So if your collateral value drops from \$15,000 to \$8,108 (a ~46% decline), you'd be exposed to liquidation. This could happen if Bitcoin drops significantly while your USDT debt remains the same.