> For the complete documentation index, see [llms.txt](https://docs.usegimbal.app/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.usegimbal.app/guides/borrowing.md). # Borrowing against Stock Tokens A walk through the Borrow and Positions screens, from the attestation on your wallet to the day the collateral comes back. A borrower on Gimbal signs a request, watches lenders fill it, settles the syndicate in one step and then services the loan from the Positions screen. Rate and term are fixed before you commit. The Stock Tokens sit in escrow at the desk, a contract with no custodian, and they come back the moment the last USDG is repaid. ## Before you start * **A Robinhood Chain wallet**: Robinhood Wallet, any other EVM wallet, or a 4337 or 7702 smart account. * **Stock Tokens** to pledge. * **The `BORROWER` attestation** on that wallet. The KYC provider writes it after the eligibility check, and Settings lists it under "Attestations for this wallet". Who receives that attestation today: verified businesses, and individuals who qualify as professional or high-net-worth clients in an eligible jurisdiction. Retail borrowers are added one jurisdiction at a time, after the consumer-credit rules of that jurisdiction have been confirmed. Which jurisdictions qualify is listed under [Jurisdictions](/compliance/jurisdictions.md). ## Creating a request The Borrow screen has one form, "Create a borrow request", and one panel beside it, "Fills and settlement". 1. **Connect.** Once the wallet is connected the platform reads your Stock Token balances. 2. **Pick the collateral.** The Collateral selector lists each token with its tier; under the amount field sit the oracle price and the session (regular, extended or closed). The Principal field shows the most you can borrow at the tier's LTV, and Max APR shows the indicative rate from the live book for your term. 3. **Fill in the four numbers.** Principal, Term, Max APR (%) and Fill deadline (hours). The APR figure caps what you will pay. The term options are 7, 14, 30 and 90 days. Your fill deadline is the launch window: lenders have that long to fill the request before it lapses, and the default is 24 hours. 4. **Read the readouts.** Three figures update as you type: LTV, Health factor (the one the loan would open at) and Origination fee. 5. **Sign and post request.** The request is an EIP-712 message with the layout the desk verifies. Signing costs no gas. 6. **Watch the coverage.** In "Fills and settlement" each open request shows a coverage bar and the blended APR. Standing and targeted offers are matched by the relayer as they arrive, and each slice is listed with its lender, fill and APR. You commit to nothing until the bar reaches 100 percent. 7. **Settle.** Settle submits the matched offers to `TermDesk` in one transaction: collateral moves to escrow and USDG arrives, less the origination fee, deducted from the principal. With a smart account the approval and the origination are batched into a single user operation. Cancel sits beside it while the request is open. ## Living with the loan Under "Loans you took" on the Positions screen each loan carries its Debt, Accrued interest, Health factor and slice count, plus blended rate, term, maturity countdown and the collateral's oracle status. | What you do | Where | Effect | | ----------- | -------------------------------------------------------- | -------------------------------------------------------------------------------------------------------- | | Top up | The "Add collateral" field | The health factor climbs. | | Repay part | The "Repay" field with a partial amount | Every slice loses principal in the same proportion and the health factor climbs. | | Repay all | Repay with Max | Interest and principal are settled and the escrow is returned, in one transaction. | | Roll over | `openRefinance` on the rollover auction, before maturity | A rising-rate auction climbs from the blended APR, and a new syndicate takes the loan into a fresh term. | Repayment is accepted at any moment, but interest owed never drops below three days' worth, so a loan closed in its first hours still pays the three-day minimum. See [Maturity, grace and rollover](/mechanics/maturity-and-rollover.md) for the rollover in detail. ## Alerts With alert channels registered, you hear about five things: * the health factor slipping under 1.10, * the market about to close while the closed-market health factor sits near its threshold, * maturity coming up, * lenders accepting into a rollover auction you opened, * an oracle pause for a corporate action, or a pause of the market itself. ## Maturity Maturity opens a 24 hour grace window in which repayment is still accepted. If it closes with the loan neither repaid nor rolled over, the loan defaults and the collateral can be sold in a Dutch auction. Proceeds settle debt and penalty; the surplus comes back to you. ## A falling price Below a health factor of 1.0, any keeper may open the Dutch auction. Bidding opens at a premium to the oracle price and descends to a floor. The sale pays the debt plus a 3 percent penalty; the rest is yours. At weekends the closed-market haircut lowers the liquidation LTV and the floor is bounded, so plan the buffer for the closed market. The mechanics are in [Health factor and the collateral auction](/mechanics/health-and-auctions.md). ## What it costs | Fee | Amount | When | | ------------------- | ------------------ | ----------------------------------- | | Origination | 0.25% of principal | At settlement, out of the principal | | Rollover | 0.10% of principal | When a rollover auction clears | | Liquidation penalty | 3% of debt | Only if the loan is liquidated | ## Habits that help * Stay well below the tier's maximum. The gap from max LTV to liquidation LTV is your whole cushion. * Look at the closed-market health factor on Friday afternoon rather than Monday morning. * Hold back a little USDG. A partial repayment is usually the cheaper way to lift the health factor. * Splits and dividends flow through the token's own multiplier and need no action from you. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## 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, and the optional `goal` query parameter: ``` GET https://docs.usegimbal.app/guides/borrowing.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. 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.