Learn how to borrow assets against your collateral safely and efficiently.
Meteoric allows you to borrow assets by using your supplied assets as collateral. You can borrow up to a certain percentage of your collateral value (determined by the Loan-to-Value ratio), and you'll pay interest on the borrowed amount.
The maximum percentage of your collateral value you can borrow. For example, if WETH has a 75% collateral factor, you can borrow up to $750 worth of assets for every $1,000 of WETH supplied.
A numeric representation of your position's safety. Health Factor > 1.0 is safe. If it drops below 1.0, your position becomes liquidatable.
If your Health Factor drops below 1.0 (due to collateral price decrease or borrow value increase), liquidators can repay part of your debt and claim your collateral at a discount.
You must supply assets before you can borrow. Navigate to the Dapp and supply assets with high collateral factors (e.g., WETH, scBTC).
In the "Assets to Borrow" section, click "Borrow" on the asset you want. The interface shows your maximum borrowing capacity and current borrow APY.
Enter the amount to borrow. **Keep your Health Factor above 1.5 for safety.** Confirm the transaction in your wallet, and the borrowed assets will be sent to your wallet immediately.
Always keep your Health Factor above 1.5. Monitor it daily on the Meteoric Board or enable liquidation alerts.
You can repay your borrow at any time to improve your Health Factor or withdraw collateral. Partial repayments are allowed.
If your collateral value drops or borrow value increases significantly, you risk liquidation. Always maintain a buffer above the minimum Health Factor.
Borrow interest compounds every block. Your debt grows over time even if you don't take any action. Monitor your position regularly.
Never borrow the maximum amount. Leave at least 30-40% buffer to protect against market volatility.