> For the complete documentation index, see [llms.txt](https://docs.folks.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.folks.finance/architecture/loan-borrow.md). # 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 $$B\_t$$​ whereas the borrow balance of a given asset $$BB\_t$$​ is defined as the amount borrowed plus accrued interest. The borrow factor $$BF$$​ represents the effective borrowed amount given a borrow, in percent terms. For example, a more volatile asset may have $$BF=110$$​% (for $10 borrowed, it is as if $11 has been effectively borrowed) whereas a less volatile asset may have $$BF=100$$​%. Consider a user who borrows multiple assets. The total borrowed amount $$TB\_t$$ at time t for a given loan’s borrows is: $$ TB\_t=\sum\_{i=ASSET,V/S}^{borrowed}BB\_{t\_i}*P\_i*BF\_i $$ Where: * $$BB\_t$$ denotes the current user borrow balance of a borrow, * $$P\_i$$ is the price of the borrowed asset, * $$BF\_i$$ is the borrow factor, * the subscript $$i$$ represents each borrow of the loan where a borrow is a unique pairing of asset and variable/stable rate. The total borrowed $$TB\_t$$ must not exceed the borrowable amount $$BA\_t$$, otherwise the loan can be liquidated by a third party: $$ TB\_t \leqslant BA\_t $$ If a borrow or reduce collateral operation would lead to the above condition being violated then it will be rejected by the protocol. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.folks.finance/architecture/loan-borrow.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.