Borrowing
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:
Access the Dashboard: Begin by navigating to the Yei Finance dashboard as you would for other transactions.
Select the Asset: Go to the “Assets to Borrow” section, find the asset you wish to borrow, and click the “Borrow” button.
Specify the Amount: Enter the desired borrowing amount manually or use the 'max' option to select the highest permissible amount based on your collateral.
Review Terms: Carefully review all associated terms, including any warnings, the Gas Fee, and your Health Factor.
Acknowledge Risks: If presented, tick the box to acknowledge the risks involved in borrowing.
Confirm Transaction: Click the "Borrow Asset" button to finalize the borrowing process.
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.
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