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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_t
​ whereas the borrow balance of a given asset
BBtBB_t
​ is defined as the amount borrowed plus accrued interest.
The borrow factor
BFBF
​ represents the effective borrowed amount given a borrow, in percent terms. For example, a more volatile asset may have
BF=110BF=110
​% (for $10 borrowed, it is as if $11 has been effectively borrowed) whereas a less volatile asset may have
BF=100BF=100
​%.
Consider a user who borrows multiple assets. The total borrowed amount
TBtTB_t
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_i
Where:
  • ​
    BBtBB_t
    denotes the current user borrow balance of a borrow,
  • ​
    PiP_i
    is the price of the borrowed asset,
  • ​
    BFiBF_i
    is the borrow factor,
  • the subscript
    ii
    represents each borrow of the loan where a borrow is a unique pairing of asset and variable/stable rate.
The total borrowed
TBtTB_t
must not exceed the borrowable amount
BAtBA_t
, otherwise the loan can be liquidated by a third party:
TBt⩽BAtTB_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.