Borrowing

Borrowing

What can I borrow?

Tenor enables users to borrow stablecoins using blue-chip collateral like ETH and BTC. Users can also borrow assets such as stablecoins and ETH, and create custom offers for long-tail assets.

How much can I borrow?

Each market has a specific and fixed Liquidation Loan-To-Value (LLTV) parameters. It is minimum value of collateral required relative to the borrowed assets. For example, if this ratio is 90%, the value of borrowed assets must not exceed 90% of the value of the collateral, or the position is eligible for liquidation.

The amount you can borrow is therefore directly linked to the value of your collateral and the LLTV of the market.

What is the cost of borrowing?

Interest is paid at the fixed rate agreed upon when the position is initiated. The rate remains unchanged until maturity. Tenor does not charge any additional platform fees for borrowing. However, future fees may be introduced for advanced features or integrations, with prior notice provided.

Does my collateral earn any interest?

No. Collateral assets do not earn interest as they are not lent out to borrowers.