> For the complete documentation index, see [llms.txt](https://docs.ethosis.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ethosis.org/guides/borrowers.md). # Borrowing on Ethosis If you hold Stock Tokens and want cash without selling them, Ethosis lets you borrow USDG against them. The loan is available around the clock, your tokens stay self-custodied in escrow, the rate is fixed before you commit, and you pick the term. ## Eligibility You need a `BORROWER` attestation. At present that covers verified businesses and professional or high-net-worth individuals in eligible jurisdictions. Retail borrowing opens one jurisdiction at a time, as the consumer-credit requirements for each are confirmed. See [Jurisdictions](/compliance/jurisdictions.md). ## Before you start You will need: * a wallet on Robinhood Chain (Robinhood Wallet or any EVM wallet, including 4337 and 7702 smart accounts), * Stock Tokens to post as collateral, * a completed eligibility check, which places an attestation on your wallet. ## Taking a loan 1. **Connect your wallet.** The dashboard picks up your Stock Token balances. 2. **Pick your collateral.** Each token shows its tier, the current oracle price, whether its market is open, how much you can borrow at each LTV, and an indicative rate drawn from the live book. 3. **Post a request.** Enter the principal, the highest APR you will accept, the term (7, 14, 30 or 90 days) and a deadline for fills. The dashboard displays the health factor you would open with. 4. **Review the fills.** The relayer matches standing and targeted offers to your request as they arrive. Before you commit you see the whole proposed syndicate, the blended APR and each individual slice. 5. **Originate.** A single transaction (or a single user operation with approve and borrow batched together) moves your collateral into escrow and pays out USDG. The origination fee comes off the principal. 6. **Monitor.** Your dashboard tracks debt, accrued interest, health factor, maturity date and the oracle status of your collateral. ## Actions during the loan | Action | Effect | | ---------------- | ------------------------------------------------------------------------------------ | | Add collateral | Raises your health factor. | | Repay part | Cuts principal pro rata across every slice and raises your health factor. | | Repay everything | Clears principal plus interest and releases your collateral in the same transaction. | | Refinance | Opens a rising-rate auction before maturity so the loan can roll into a new term. | You can repay at any point once the 3-day minimum interest period has passed. ## Notifications Register one or more alert channels and you will hear when: * your health factor falls under 1.10, * the underlying market is about to close and your closed-market health factor is close to the threshold, * maturity is near, * a rollover auction you opened has received acceptances, * the oracle for your collateral is paused (for a corporate action) or the market itself is paused. ## At maturity A 24 hour grace window follows maturity. If you have neither repaid nor refinanced by the end of it, the loan defaults and your collateral is sold in a Dutch auction. Whatever remains after the debt and the penalty is returned to you. See [Maturity and refinancing](/protocol/maturity-and-refinancing.md). ## If your collateral falls in value Once your health factor goes under 1.0, anyone may open a Dutch auction on your collateral. Bidding begins above the oracle price and falls towards a floor. The proceeds pay the debt plus a 3% penalty, and the remainder is yours. At weekends the liquidation LTV is lower (the closed-market haircut) and the auction floor is bounded, so size your buffer with that in mind. See [Health factor and liquidation](/protocol/health-and-liquidation.md). ## What it costs * Origination fee: 0.25% of principal. * Refinance fee: 0.10% of principal. * Liquidation penalty: 3% of debt, charged only if you are liquidated. ## Advice * Stay well below the tier maximum. The distance between maximum LTV and liquidation LTV is your safety margin. * Look at your closed-market health factor on Friday rather than Monday. * Hold some USDG in reserve for partial repayment; it is frequently cheaper than adding more tokens. * Dividends and splits flow through the token's own multiplier, so there is nothing for you to do. --- # 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.ethosis.org/guides/borrowers.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.