Borrowing

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Introduction
Borrowing
How are borrow rates determined? 
Variable interest rates paid by borrowers are a function of market utilization. As the utilization of a market (i.e. borrows relative to deposits) increases, the interest rate charged to borrowers increases. As the utilization of a market decreases, the interest rate charged to borrowers decreases.
Stable interest rates paid by borrowers remain constant unless the average borrow rate is lower than 25% APY and the utilization rate is over 95%. At which time, the borrowers interest rate can reset to the current market rate which could be substantially higher. 
Can I borrow using a stable and variable interest rate at the same time for one asset? 
No, you can only either borrow using a stable or variable interest rate for an asset. You can have different borrow interest rates types for different assets.   
Can I add more collateral to raise my Health Factor back up to prevent being liquidated? 
Yes, you can make a deposit to raise your Health Factor. 
How do I know how much interest I’m paying? 
In your ‘Account’ tab, tap on the borrowed asset to see your interest rate, borrowed amount, and total debt.   
Why would I borrow instead of selling my assets? 
Selling your asset means closing your position in that asset. If you are long on that asset, meaning you believe that the price will go up, and you sell the asset then you would not see the potential upside. By borrowing against the asset, you unlock liquidity or working capital without incurring the potential opportunity cost of selling. 
How do I borrow? 
To borrow, first deposit a supported asset. All deposits into Moola Market by default can be used as collateral and earn compound interest at the market interest rate. To borrow tap borrow, tap the asset you want to borrow, type in the amount or use the slider bar, tap borrow, and confirm the transaction in your wallet. 
Who can borrow? 
Any wallet address on the Celo network that has deposited collateral into Moola Market can borrow against the value of their collateral. Additionally, any wallet address that has been delegated credit by another Moola Market depositor can borrow. 
How much can I borrow?
The maximum amount that an address can borrow is determined by the value of deposited collateral and the maximum loan-to-value ratio for a market. If an address has been delegated credit by another address, then the maximum borrow amount (and interest rate type) is determined by the delegator.
How is loan-to-value (LTV) calculated?
 LTV = Total Debt / Collateral Value
What is the maximum Loan-to-Value (LTV) ratio? 
The maximum LTV ratio defines the maximum amount that can be borrowed against a specific collateral. Maximum LTV is expressed as a percentage. For example, a Maximum LTV of 75% means that for every 1 CELO worth of collateral, borrowers can borrow 0.75 CELO worth of another currency. Once a loan is taken, the LTV evolves with market conditions.
What are the maximum Loan-to-Value (LTV) ratios for each market? 

cUSD = 75%
cEUR = 75%
cREAL = 75% 
CELO = 75%
MOO = 50% 
How is the maximum Loan-to-Value (LTV) ratios for each market determined? 
Max LTV is a governable parameter that is set when a new market is deployed and can be adjusted via governance.  
What asset do I need to repay? 
You repay the same asset you borrowed. For example, if you borrow 1 CELO then you need to repay 1 CELO plus interest. 
When do I need to repay? 
Collateralized loans are open-ended because they do not have a set repayment date. As long as the borrower keeps their LTV ratio below the liquidation threshold, they may keep their debt position open. 
What are the liquidation thresholds for each market? 

cUSD = 80%
cEUR = 80%
cREAL = 80% 
CELO = 80%
MOO = 65% 
What is the difference between variable and stable interest rates? 
Variable interest rates can change from block to block and are determined by the utilization of a market. Stable interest rates are intended to not change in the short term but could reset under certain market conditions.  
When could my stable rate be reset? 
Your stable rate could reset if the average borrow rate is lower than 25% APY and the utilization rate is over 95%. 
How do I switch my interest rate type? 
Click on your 'Account' tab, select the borrowed asset, select 'Interest Mode', select 'Set All to', and sign the transaction with your wallet. 
What is my Health Factor? 
Your Health Factor is a numeric representation of the safety of your deposited assets relative to your borrowed assets. The higher the Health Factor is, the safer your deposited funds are against a liquidation scenario. If your Health Factor reaches 1, the liquidation of your deposits will be triggered.  
Health Factor = (Total Collateral * Liquidation Threshold) / Total Debt 
How can I track my Health Factor? 
You can view your Health Factor by connecting your wallet address at app.moola.market.  

You can also track your Health Factor using the @MoolaMarketBot on Telegram. Get started by adding the wallet addresses and Health Factor thresholds you would like for the bot to monitor. It can watch as many addresses as you want. To add monitor request, use:
 /add WALLET_ADDRESS HEALTH_FACTOR
For Example: If you want to be notified when the Health Factor of wallet address 0xe4c183d99b463cc2190b737b51ae26cc6f17ed62 drops below 1.25 then you would type
 /add 0xe4c183d99b463cc2190b737b51ae26cc6f17ed62 1.25
You can add multiple monitor requests using the same process shown above.
For help, type /help to get a list of Frequently Asked Questions.
What is the liquidation threshold? 
The Liquidation Threshold is the percentage at which a loan is defined as under-collateralized. A liquidation threshold of 80% means that if your Loan-To-Value ratio goes above 80%, then your loan is under-collateralized and some of your collateral can be liquidated. The delta between the Maximum Loan-To-Value (e.g. 75%) and the Liquidation Threshold (e.g. 80%) is a safety cushion for borrowers. 
What impacts my Health Factor? 
The value of your deposits impacts your Health Factor. If the value of your deposits increases relative to your borrowed assets, then your Health Factor increases indicating that a liquidation is less likely. If the value of your deposits decrease relative to your borrowed assets, then your Health Factor decreases indicating that a liquidation is more likely. Depositing additional collateral  increases your Health Factor while withdrawing collateral decreases your Health Factor.  Repaying some of your debt increases your Health Factor while borrowing additional assets decreases your Health Factor. 
When do I need to pay back a collateralized loan? 
There is no pre-defined time period in which you need to pay back a collateralized loan. As long as the value of your deposited assets stays above the liquidation threshold, you can borrow for an undefined period of time. However, as time passes, interest owed continues to accumulate and may decrease your Health Factor to a point where your collateral is at risk of liquidation. 
How do I pay back the loan? 
Connect your wallet, tap ‘Repay’, select the currency from the picker menu, input the amount to repay, tap next to verify the information is correct, Confirm the transaction in your wallet. 
How do I avoid liquidation? 
You can avoid liquidation by keeping your Health Factor above 1. Depositing additional collateral, repaying some or all of your loan, and an increase in the market price of your collateral all increase your Health Factor and reduce the likelihood of a liquidation.
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