# Borrow

### **Overview**

Pike allows users to borrow supported crypto assets by using other assets as collateral. Borrowers pay interest on their loans, which is distributed to lenders as earnings. The amount a user can borrow is determined by the value of their supplied collateral and the collateral factor assigned to the asset.

### **Example Calculation**

If a user supplies 10 WETH as collateral valued at $35,000 and the collateral factor for WETH is 80%, the user can borrow up to:

**$35,000 × 0.80 = $28000 worth of the targeted asset.**

### **Prerequisites**

Before borrowing an asset, ensure that:

* You are connected to the protocol dashboard.
* You have a supplied asset as collateral on the protocol.

### **Step-by-Step Borrowing Guide**

1. **Select an Asset to Borrow**

   * Navigate to the ’**Assets to borrow’** section of the Lending Dashboard.
   * Click the **Borrow** button for the asset you want to borrow.

   <figure><img src="/files/GFc3yNxADR2l0NlYD57w" alt=""><figcaption></figcaption></figure>

2. **Set Borrow Amount and Review Details**

   * Enter the amount you wish to borrow (up to the maximum limit based on your collateral).
     * **Manual Input:** Enter a custom amount.
     * **Predefined Options:** Select from preset percentages (25%, 50%, 75%, 100%).
   * Review the Borrow APY and its impact on your health factor.
   * **Note:** The closer your borrow amount is to the limit, the lower your health factor, increasing the risk of liquidation.

   <figure><img src="/files/3YVI0vSoZxncPWlT2BV0" alt=""><figcaption></figcaption></figure>

3. **Confirm the Borrow Transaction**

   * Approve the transaction in your connected crypto wallet.
   * Wait for the transaction confirmation on the blockchain.

4.

```
<figure><img src="/files/DwQb4WLci4dj9aIkwuIS" alt=""><figcaption></figcaption></figure>
```

5. **Monitor Borrowed Assets**
   * Once confirmed, your borrowed amount will appear on the dashboard in ‘**You Borrowe**d’ section.
   * Track your portfolio and health factor regularly.

<figure><img src="/files/MWYs3zYcnK222vNPUKHt" alt=""><figcaption></figcaption></figure>


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