Borrowing Tokens

​Borrowing on 01 is very similar to borrowing on other borrow lending venues, such as Aave and Compound. You must maintain a certain over-collateralization ratio to the amount you borrowed to avoid liquidation.
Make sure you deposited enough collateral before borrowing.
1. Select Token
Select a token to borrow by clicking on it.
2. Set Borrow Amount
Set the amount you wish to borrow, denominated in the token you are borrowing.
Be careful when borrowing the max amount. This might put you close to the liquidation threshold.
3. Monitor Borrow Limit
Your borrow limit bar shows how close you are to the maximum amount borrowable. When this amount reaches 100%, it means you can no longer borrow, and have reached your Initial Margin Fraction requirement. Learn more about how borrowing affects your margin fraction here.
It is not advisable to be at 100% borrow limit.
4. Monitor Risk
Your Account Risk shows how close you are to getting liquidated. The number will increase as soon as you start borrowing or open a position.
Avoid reaching 100% Risk at all cost. You can deposit more collateral, close positions, or repay loans to reduce risk.

Last modified 3mo ago

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Contents

1. Select Token

2. Set Borrow Amount

3. Monitor Borrow Limit

4. Monitor Risk