How Borrowing Works
You post tokenized stocks as collateral and borrow USDC against them at 0% interest. Your loan never grows on its own: it changes only when you borrow more or repay. Because nothing accrues, holding the loan for a year costs the same in interest as holding it for a day.
The lifecycle
Bring or buy collateral
Deposit a supported tokenized stock you hold, or buy one on the Buy screen.
Your collateral joins its asset's pool
It counts toward what you can borrow straight away, and it joins the options cycle (a weekly or two week options period) when the next cycle starts.
Borrow USDC
Borrow up to 50% of your collateral's value. No interest, no origination fee, no recurring fees.
Use it
There are no restrictions on what you do with the USDC.
Repay
Repay any amount, whenever you like, in USDC.
Withdraw
Take collateral out between cycles, once it has been through at least one options cycle and its tokens are back in the pool, as long as what remains keeps your loan within 50% LTV.
Rules that apply to every position
| Rule | Detail |
|---|---|
| One position per asset | Each wallet has one position per asset. Adding to it increases that position. |
| Maximum LTV | 50% when you borrow or withdraw |
| Liquidation | If LTV passes your asset's threshold (54.1% to 62.5%, by asset), some or all collateral is sold |
| Availability of USDC | You can borrow only what the lending pool has available, and borrowing pauses when 85% of the pool is lent |
| Hours | Borrow and repay 24/7. Liquidations run during US market hours. |
| Repayment | Any amount, any time, unless repayments are paused (see Circuit Breakers and Pauses) |
Why there is no interest
Lenders are paid from the premium earned by selling covered calls on the pooled collateral, plus Treasury bill yield on idle cash. Because the collateral already pays the lenders, charging you interest would charge twice for the same thing. Your cost is different: the upside above the strike in a cycle where calls are exercised. See What Borrowing Really Costs You.