Borrow
How to Borrow on Orchid
Borrowing on Orchid is collateral-based and updates in real time as prices and positions change.
Steps to Borrow
Supply Collateral Supply one or more supported assets to Orchid. Supplied assets can be enabled as collateral from the Dashboard.
Open Quick Borrow or Dashboard Navigate to Quick Borrow or manage borrowing directly from your Dashboard once connected.
Select Borrow Asset Choose the asset you want to borrow and enter the desired amount. Borrowing power is calculated instantly.
Confirm Position Review your loan-to-value (LTV), health factor, and liquidation price before confirming.
Once confirmed, borrowed assets are available immediately.
Borrowing Limits
Your borrowing capacity depends on:
The value of your supplied collateral
The collateral’s maximum LTV
Available liquidity in the selected market
You cannot borrow:
More than available liquidity
Beyond the limit allowed by your health factor
All limits are visible before submitting a transaction.
Why Borrow Instead of Selling?
Borrowing on Orchid lets you unlock liquidity while staying exposed to your assets.
Advantages of Borrowing
Preserve Ownership Keep your assets while accessing capital instead of selling at the wrong time.
Stay in the Market Maintain upside exposure if your collateral appreciates.
Capital Flexibility Borrow to deploy capital, rebalance positions, or cover short-term needs without exiting long-term holdings.
Interest & Rates
Variable Rates Only Borrow rates adjust dynamically based on market utilization and demand.
Real-Time Updates Rates update continuously as supply and demand change.
Your current borrow rate is always visible in the Dashboard and Quick Borrow panel.
Health Factor
The health factor measures the safety of your position.
Higher = Safer A higher health factor means lower liquidation risk.
Liquidation Threshold If your health factor approaches critical levels, your position becomes eligible for liquidation.
For safety, Orchid’s interface restricts borrowing and withdrawals that would push your health factor below a safe buffer.
How Health Factor Changes
Your health factor can change due to:
Price movements of collateral
Changes in borrowed amount
Accrued interest over time
If collateral value rises, your position becomes safer. If collateral value falls or interest accumulates, liquidation risk increases.
Repaying a Loan
When to Repay
There is no fixed repayment deadline. You can keep a loan open as long as your position remains healthy.
Over time, interest accrual may reduce your health factor.
How to Repay
Open the Dashboard.
Select the borrowed asset.
Choose the amount to repay and confirm.
Loans must be repaid in the same asset that was borrowed.
Avoiding Liquidation
To reduce liquidation risk, you can:
Repay part or all of the borrowed amount
Supply additional collateral
Monitor your health factor during market volatility
Orchid provides continuous feedback so you can act before risk becomes critical.
Borrowing on Orchid is designed to be transparent, responsive, and controlled. Leverage responsibly and stay synchronized with your position.
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