# How to Borrow on Scallop ## Borrow To borrow on Scallop, you need to deposit collateral so that you can borrow the desired asset. However, before making the deposit and borrowing, you need to create an [obligation](broken://pages/c56ar21giCcXNoTCw5nh#set-account) account.

### Deposit Collateral You can choose the asset that you want to use as collateral.

Enter the amount of assets you want to use as collateral.

> You will not earn any yield on assets that you use as collateral.

As seen in the image above, you can view a summary dashboard of the assets you've deposited in the collateral pools. The summary dashboard consists of four sections: 1. **Available Collateral**: Total USD value of assets available for borrowing. 2. **Deposited Collateral**: Total USD value of assets deposited into the Collateral Pools. 3. **Risk Level**: Indicates the security status of the obligation account, calculated as "borrowValueWithWeight" divided by "requireCollateralValue". A reading of 100% means the liquidation threshold is reached, even if it exceeds this value. 4. **Collateral Portfolio**: Lists the assets you've supplied to the collateral pools. ### Borrowing After depositing your assets into the collateral pools, you can select the assets you want to borrow from the borrowing pools. Enter the amount you want to borrow from the borrowing pools, and consider that the higher your borrowing amount, the higher the Risk Level of your obligation, which may lead to your obligation account being liquidated.

As seen in the image above, there are **Borrow Fee** parameters, meaning you will be charged a fee of 0.3% every time you borrow assets.

* **Available Collateral**: Total USD assets that you can borrow. * **Debt Assets**: Total USD assets that you have borrowed. * **Risk Level**: Indicates the security status of your obligation account, calculated based on "borrowValueWithWeight" divided by "requireCollateralValue". A reading of 100% indicates that the liquidation threshold has been reached; it remains at 100% even if exceeded. * **Debt Portfolio**: List of assets that you have borrowed. #### Borrow APR and Reward APR You may notice that in the borrowing pools, there are columns for Borrow APR and Reward APR.

Borrow APR refers to the loan interest rate, while Reward APR is the incentive program provided to users who borrow. When the Reward APR is greater than the Borrow APR, it means that by borrowing, you receive a positive yield.

You can claim rewards from borrowing in that panel as well. So, if you stake your sCoins and also borrow assets with a reward APR, it means you receive Reward Incentive Program from both the Lending Pools and Borrowing Pools. ### Avoid Liquidation To avoid liquidation, you can set the Risk Level of your obligation to be less than 100%. If the Risk Level of your obligation account exceeds 100%, Scallop will initiate the [Soft Liquidation](broken://pages/p1lMLrvjAMQacRm9RNbH#soft-liquidation) mechanism.

In the example, the obligation has reached 93%, and if it surpasses 100%, our collateral assets will be liquidated. To prevent this, we can repay the assets we previously borrowed. Since the borrowed assets are only USDC, we can repay this asset to decrease the Risk Level percentage.

After repaying the debt assets, our Risk Level percentage has decreased.

#### Withdraw Collateral Before withdrawing collateral, make sure you have repaid all the assets you borrowed along with their interest. Once you have repaid all the debt assets, you can withdraw all your assets from the collateral pools.

Visit [Borrowing](broken://pages/c56ar21giCcXNoTCw5nh) and [Liquidation](broken://pages/p1lMLrvjAMQacRm9RNbH) to get more information --- # Agent Instructions: 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: ``` GET https://docs.scallop.io/scalloper-guide/how-to-borrow-on-scallop.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.