Borrow & Lend FAQ
Can the same collateral be used to trade perpetuals?
- Yes it can, up to the margin requirement.
How does interest get charged on borrows?
- Interest automatically accrues to the account. Interest is paid in the same currency as the currency borrowed.
Are there any fees on borrows?
- There is no borrow initiation fee.
- Each spot market has a total_if_factor which allocates a portion of interest collected from borrows to the insurance fund.
Are they any risks lending?
- Yes, there is always the risk of borrower default. When there is not enough insurance available, the losses will be socialised across depositors. To help mitigate the risks, the protocol imposes prudent requirements and guards around borrows.