# For Borrowers ### Creating a Loan #### Getting Started as a Borrower As a borrower, you can get USDC loans by locking up your cryptocurrency as collateral. Here's how to create your first loan:What you need: * A Web3 wallet (like MetaMask) * Collateral tokens you want to lock up #### How to Create a Loan 1. **Prepare Your Collateral** * Choose which tokens you want to use as collateral * Make sure you have enough tokens to cover your loan amount * Consider the collateral ratio (how much collateral vs loan amount) 2. **Set Your Loan Terms** * Loan Amount: How much USDC you want to borrow * Collateral Amount: How much of your tokens to lock up * Interest Rate: The total amount you'll pay back (principal + interest) * Funding Duration: How long lenders have to fund your loan * Repayment Duration: How long you have to repay after getting funded 3. **Create the Loan** * Click "Create Loan" * Enter all your loan parameters * Approve the collateral transfer in your wallet * Your collateral gets locked in the smart contract * Your loan goes live for lenders to fund #### Understanding Loan Terms Collateral Ratio: * This is how much collateral you lock vs how much you borrow * Higher collateral = safer for lenders = easier to get funded * Example: Lock $2000 worth of tokens to borrow $1000 USDC Interest Rate: * Set the total amount you'll pay back * Example: Borrow 1000 USDC, pay back 1100 USDC (10% interest) * Higher interest attracts more lenders Deadlines: * Funding Deadline: When lenders stop funding your loan * Repayment Deadline: When you must repay the loan * Claim Extension: Extra time to claim funds after funding ends #### Tips for Creating Successful Loans Set Realistic Terms: * Offer competitive interest rates * Provide adequate collateral (150-200% of loan amount) * Set reasonable deadlines (1-7 days for funding, 30-90 days for repayment) Choose Good Collateral: * Use stable, widely-accepted tokens * Avoid highly volatile tokens * Consider the current market value Be Transparent: * Set clear repayment terms * Consider your ability to repay * Don't borrow more than you can afford ### Managing Your Loan #### Claiming Your Funds Once your loan gets funded: 1. Check Funding Status * See how much has been raised * Check if the funding deadline has passed * Verify the loan state is "Funded" or "Fundraising" 2. Claim Your USDC * Click "Claim Funds" on your loan * Receive the raised USDC in your wallet * Your loan state changes to "Borrower Claimed" Important Notes: * You can claim even if the loan isn't 100% funded * You must claim within the extension period * If you don't claim in time, the loan gets liquidated #### Repaying Your Loan When it's time to repay: 1. Calculate Your Payment * You owe the raised amount plus interest * Plus any protocol fees * The amount is prorated if you didn't get 100% funding 2. Make the Payment * Click "Repay Loan" on your loan * Approve the USDC transfer in your wallet * Your collateral gets returned to you * Lenders can claim their repayment Example: * You borrowed 1000 USDC * You owe 1100 USDC (1000 + 100 interest + fees) * Pay 1100 USDC → Get your collateral back #### If You Can't Repay What happens: * The loan gets liquidated after the deadline * Lenders receive your collateral instead of USDC * You lose your collateral tokens Avoiding Default: * Set realistic repayment terms * Monitor your collateral value * Have a backup plan for repayment #### Cancelling a Loan You can cancel your loan before claiming funds: 1. When You Can Cancel * Before the funding deadline + extension period * If you change your mind about the loan * If you need to adjust terms 2. What Happens * You get most of your collateral back * A small rejection fee goes to lenders * Lenders get their USDC back 3. Rejection Fee * 5% of your collateral if loan was >10% funded * No fee if loan was <10% funded * Fee is distributed to lenders ### Common Scenarios #### Scenario 1: Fully Funded Loan * You create a loan for 1000 USDC * Lenders fund the full amount * You claim 1000 USDC * You repay 1100 USDC * You get your collateral back #### Scenario 2: Partially Funded Loan * You create a loan for 1000 USDC * Lenders only fund 500 USDC * You claim 500 USDC * You repay 550 USDC (prorated) * You get your collateral back #### Scenario 3: Defaulted Loan * You can't repay on time * Loan gets liquidated * Lenders get your collateral * You lose your collateral tokens #### Scenario 4: Cancelled Loan * You cancel before claiming * You get 95% of collateral back * Lenders get 5% rejection fee * Lenders get their USDC back ### Important Notes Timing is Critical: * Claim funds within the extension period * Repay before the repayment deadline * Monitor your loan status regularly Collateral Safety: * Your collateral is locked until loan completion * You can't withdraw collateral while loan is active * Only you can claim or cancel your loan Fees: * Protocol fees are taken from interest * Gas fees apply to all transactions * Rejection fees apply to cancellations Partial Funding: * You can claim partial funding * Repayment is prorated to what you actually received * This gives you flexibility if full funding isn't achieved --- # 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. 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