Borrow

How to borrow assets on Mirai

Borrowing assets on Mirai creates a loan agreement between the user and other lenders on the platform. As a borrower, you are able to repay the loan at any time, however, you will be charged a Borrow APY rate, which is paid to the lenders on the platform.

It is important to note that before you can borrow assets on Mirai, you must first deposit collateral assets into your sub-account. This collateral serves as a safety net in case the value of the borrowed assets decreases, as all loans on Mirai are over-collateralized, which means that you need to deposit more value into the protocol than you wish to borrow. This is to minimize the risk for the lender and to ensure that there are enough assets to cover the borrower's debt even if the value of the borrowed assets decreases.

You can monitor your sub-account's health score and track how close you are to liquidation point, based on the collateralization rate, when deciding to borrow more or to repay the outstanding debts.