Loan borrow

After a user has locked up their collateral, they can borrow against it. The amount the user has borrowed of a given asset is defined as BtB_tBt​
​ whereas the borrow balance of a given asset BBtBB_tBBt​
​ is defined as the amount borrowed plus accrued interest.
The borrow factor BFBFBF
​ represents the effective borrowed amount given a borrow, in percent terms. For example, a more volatile asset may have BF=110BF=110BF=110
​% (for $10 borrowed, it is as if $11 has been effectively borrowed) whereas a less volatile asset may have BF=100BF=100BF=100
​%.
Consider a user who borrows multiple assets. The total borrowed amount TBtTB_tTBt​
 at time t for a given loan’s borrows is:
TBt=∑i=ASSET,V/SborrowedBBti∗Pi∗BFiTB_t=\sum_{i=ASSET,V/S}^{borrowed}BB_{t_i}*P_i*BF_iTBt​=i=ASSET,V/S∑borrowed​BBti​​∗Pi​∗BFi​
Where:
​BBtBB_tBBt​
 denotes the current user borrow balance of a borrow,
​PiP_iPi​
 is the price of the borrowed asset,
​BFiBF_iBFi​
 is the borrow factor,
the subscript iii
 represents each borrow of the loan where a borrow is a unique pairing of asset and variable/stable rate.
The total borrowed TBtTB_tTBt​
 must not exceed the borrowable amount BAtBA_tBAt​
, otherwise the loan can be liquidated by a third party:
TBt⩽BAtTB_t \leqslant BA_tTBt​⩽BAt​
If a borrow or reduce collateral operation would lead to the above condition being violated then it will be rejected by the protocol.
Last modified 9mo ago