# Borrow

By depositing supported tokens as collateral at Yei Finance, you gain the ability to borrow various assets. The terms of borrowing, such as the Loan-to-Value (LTV) ratio, conform to predefined risk parameters, with interest accruing according to these terms.

### **How to Borrow?**

#### **Preparing to Borrow**

To enable borrowing, first deposit assets as collateral. The maximum amount you can borrow depends on:

* The value of your deposited assets.
* The type of assets you have deposited.
* The liquidity available in the assets you wish to borrow.

#### **Borrowing Procedure**

To borrow assets from Yei Finance, follow these straightforward steps:

1. **Access the Dashboard:** Begin by navigating to the Yei Finance dashboard as you would for other transactions.
2. **Select the Asset:** Go to the “Assets to Borrow” section, find the asset you wish to borrow, and click the “Borrow” button.
3. **Specify the Amount:** Enter the desired borrowing amount manually or use the 'max' option to select the highest permissible amount based on your collateral.

   <figure><img src="https://2983504023-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fj0nufC5pf4ZbVoZ4vP67%2Fuploads%2FpnhP5DSpTgD0V3eHxMqZ%2F%E6%88%AA%E5%9C%96%202024-06-25%20%E6%99%9A%E4%B8%8A9.48.35.png?alt=media&#x26;token=71c48079-aa2d-403a-b14e-54f2e2be3acb" alt=""><figcaption></figcaption></figure>
4. **Review Terms:** Carefully review all associated terms, including any warnings, the Gas Fee, and your Health Factor.
5. **Acknowledge Risks:** If presented, tick the box to acknowledge the risks involved in borrowing.

   <figure><img src="https://2983504023-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fj0nufC5pf4ZbVoZ4vP67%2Fuploads%2FqvgkySw4HFmTBt6U1c1s%2F%E6%88%AA%E5%9C%96%202024-06-25%20%E6%99%9A%E4%B8%8A9.48.44.png?alt=media&#x26;token=d8183858-2a5e-43a2-aa51-7c0c872a6463" alt=""><figcaption></figcaption></figure>
6. **Confirm Transaction:** Click the "Borrow Asset" button to finalize the borrowing process.

   <figure><img src="https://2983504023-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fj0nufC5pf4ZbVoZ4vP67%2Fuploads%2FyjwetjniMdeNLtgmrR09%2F%E6%88%AA%E5%9C%96%202024-06-25%20%E6%99%9A%E4%B8%8A9.49.06.png?alt=media&#x26;token=05fc0b1d-6eb7-4f91-bda6-5574412d379b" alt=""><figcaption></figcaption></figure>

#### **Potential Risks of Borrowing**

Borrowing carries inherent risks, especially if market conditions fluctuate significantly:

* **Risk of Liquidation:** If your Health Factor falls below 1, the protocol may initiate liquidation of your collateral to cover the debt, which could lead to substantial losses.

#### **Borrow Caps**

Borrow caps define the maximum amount of an asset which can be borrowed. Borrow caps can be used to prevent traditional and flash borrowing of an asset which may experience a price exploit and lead to protocol insolvency. A borrow cap is an optional parameter, and the value will depend on-chain liquidity of the asset and total volume of borrowed assets in the pool.