Borrowing
Borrowing draws EURC against collateral you have posted. Two numbers govern it: the max LTV, which caps how much you can take, and the liquidation threshold, which decides when the position is taken apart.
Borrowing power
Posting collateral opens borrowing power equal to 50% of its value — the max LTV. Nothing is borrowed automatically: until you draw EURC, the position carries no debt and cannot be liquidated.
The gap that keeps you safe
Between 50% and 75% you cannot borrow more, but nothing is triggered. That 25-point band is the safety margin: room for the collateral price to move before anything is forced. Borrowing to the very top of the max LTV spends that margin before you start.
Interest
The borrow rate is variable and rises with utilisation. It is not voted on — it is a function of how much of the reserve is lent out at that block. Interest accrues into the debt rather than being billed, so a position left alone drifts toward the threshold on its own.
Repaying
- Repaying any amount at any time lowers the debt and moves the position away from liquidation. There is no maturity and no penalty for repaying early.
- Adding collateral works too: it raises the value the threshold is measured against, without touching the debt.
- Collateral stays locked as security until the debt is cleared. Once it is, you can withdraw it in full.
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Last updated 1 day ago · Kurate