> For the complete documentation index, see [llms.txt](https://docs.oisy.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.oisy.com/using-oisy-wallet/borrow.md). # Borrow OISY Wallet lets you unlock liquidity from assets you already hold, through simple, transparent borrowing products. You choose what to supply as collateral and what to borrow against it, while staying in control of repaying and withdrawing. {% hint style="info" icon="dog" %} This page explains the basics: How borrowing works, what collateral is, how risk is measured, and how you get your assets back. {% endhint %} ### What is Borrow? Borrow lets you access liquidity by taking a loan against an asset you already hold, without selling it. You supply an asset as collateral, then borrow a different asset against it, up to a set loan-to-value (LTV) limit. Interest accrues on what you borrow, and you can repay or withdraw whenever you choose, as long as your position stays healthy. Today, Borrow supports [Liquidium](/using-oisy-wallet/borrow/liquidium.md) ### How Borrowing Works 1. You supply an asset as collateral. Supplying moves it into the lending protocol, where it starts earning supply yield and automatically counts as collateral you can borrow against. 2. You borrow against your collateral. You choose an asset to borrow and an amount, up to the maximum your collateral allows. The borrowed funds are delivered straight to your OISY wallet. 3. Interest accrues on both sides. Your collateral keeps earning supply yield; your borrowed amount accrues borrow interest. Both are shown in OISY. 4. You track your position's health. OISY shows a health factor for your position — how close it is to the point where your collateral could be liquidated. 5. You repay to reduce risk and free up collateral. Repaying, in full or in part, improves your health factor. Once a borrow is fully repaid, the collateral behind it becomes withdrawable again. 6. You withdraw whenever your position allows it. You can withdraw supplied collateral that isn't needed to keep an existing borrow healthy. ### Who Holds My Collateral? Unlike a bank loan, no company takes custody of your assets off-chain. When you supply collateral, it's held by the lending protocol itself, which runs onchain. OISY does not take custody of your funds — it provides the interface and signs the protocol's calls using your existing OISY identity. This is different from simply holding a token in your wallet: once supplied, your collateral is subject to the protocol's rules, including liquidation if your position's health factor falls too far — see Understanding Liquidation Risk below. ### How Do I Get My Collateral Back? Every borrow can be repaid, and every supply can be withdrawn, as long as doing so keeps any remaining position healthy. * If you have no outstanding borrow, you can withdraw your full supplied balance at any time. * If you have an outstanding borrow, you can withdraw collateral only up to the amount that keeps your position above its liquidation threshold; OISY shows this limit before you confirm. * Repaying reduces what you owe and improves your health factor. Once a borrow is fully repaid, all of its collateral becomes withdrawable again. ### Understanding LTV and Health Factor Two figures describe how much risk a borrow position carries: * **Max LTV (loan-to-value)** — the most you can borrow against your collateral, as a percentage of its value. This caps how large a borrow you can open. * **Liquidation threshold** — a higher percentage than max LTV. If your debt grows past this relative to your collateral's value, your position becomes eligible for liquidation. The gap between the two is your safety buffer. OISY combines both into a single **health factor**, shown as a percentage: 100% means no debt at all, and the closer it gets to 0%, the closer your position is to liquidation. OISY color-codes it so you can tell your risk level at a glance: * 🟢 Healthy — 50% or higher * 🟠 At risk — between 15% and 50% * 🔴 Critical — below 15% * Liquidation happens at 0% Health factor can move on its own over time, even without you doing anything, since interest accrues continuously on your debt — a position can drift toward liquidation just by sitting still. ### Is This Safe? OISY does not create or operate the lending protocols it connects to. Borrow integrates with trusted third-party lending protocols through their official smart contracts and SDKs. We highlight what you're borrowing against, how interest and liquidation work, and the risks involved — but you remain in control of the decision to open, adjust, or close a position. As with any onchain lending protocol, borrowing carries real risk: your collateral can be liquidated if your health factor reaches 0%, and you're relying on the protocol's code functioning correctly. ### Understanding Liquidation Risk Borrowing against collateral introduces a risk that simply holding or supplying assets does not: liquidation. #### 1. Liquidation Risk (for any borrow position) If your health factor reaches 0%, the protocol can liquidate (sell) enough of your collateral to cover your debt. This can happen because the value of your collateral drops, the value of what you borrowed rises, or because accrued interest has grown your debt over time — all of which push your health factor down. OISY always shows your current health factor and warns you before an action would push it into a risky range. {% hint style="info" %} Example You supply 1 BTC as collateral and borrow USDC against it at a comfortable health factor. If BTC's price drops significantly, the same debt now represents a larger share of your collateral's value, so your health factor falls — potentially into the at-risk or critical range, even though you didn't touch your position. {% endhint %} #### 2. Underlying Asset Value Risk (for supplied collateral) Even without any borrowing, the value of your supplied collateral still depends on the market price of the asset you supplied. If its price drops, the value of your position drops with it — separate from, and in addition to, any liquidation risk from an open borrow. OISY shows your supplied balance, borrowed balance, and health factor separately, so you can see all three effects clearly. ### What's Coming Next Borrow will expand to include: * additional lending providers, * more supported collateral and borrow assets, * active alerts as your health factor approaches risk thresholds, * and streamlined ways to manage multiple positions at once. Each will follow the same principles: transparency, clear risk information, and simple UX. --- # 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.oisy.com/using-oisy-wallet/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.