> For the complete documentation index, see [llms.txt](https://docs.lendsprotocol.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.lendsprotocol.com/borrow-against-tokenized-stocks/borrowing-leusd.md). # Borrowing leUSD Borrowing lets you unlock stablecoin liquidity from a tokenized stock without selling it. You deposit stock collateral, mint leUSD, and later repay the leUSD plus accrued fees to release your collateral. This can preserve your exposure to a stock while unfreezing your funds, allowing you to utilize that capital efficiently without selling your stock. ## What You Keep and What You Owe After depositing collateral and borrowing: * you remain economically exposed to changes in the stock's value * the collateral is locked in your vault until you decide to withdraw it * your leUSD debt accrues stability fee * your position can be partially or fully liquidated if its health falls below the liquidation threshold Each wallet has a separate position for each collateral market. An unhealthy position in one market does not affect a healthy position in another. Respectively, a healthy position in one market does not rescue an unhealthy position in another. ## How to Borrow 1. Open **Borrow** in the LENDS app. 2. Select the stock market you want to use. 3. Choose **Deposit**, enter an amount, and confirm the approval and deposit transactions. 4. Choose **Mint** and enter the amount of leUSD you want. 5. Review **LTV after**, **Health after**, **Liquidation price**, **Mint room**, and the stability fee. 6. Confirm the mint transaction in your wallet. The app prevents a mint that would exceed your borrow limit or any applicable vault, market, or protocol cap. ## The Four Numbers That Matter ### Loan-to-value (LTV) LTV is your debt divided by the current value of your collateral. If you deposit $1,000 of collateral and borrow 300 leUSD, your LTV is 30%. The configured default maximum borrow LTV ranges from 40% to 70% depending on price volatility of a particular stock, and is constant for each separate stock. A lower personal LTV creates a larger buffer against price declines. ### Liquidation threshold The liquidation threshold is the LTV at which your position becomes eligible for liquidation. It ranges from 50% to 90% depending on price volatility of the given stock. The gap between the borrow LTV and liquidation threshold prevents a position from becoming immediately liquidatable at the moment it is opened, and creates a buffer that ensures protocol solvency when liquidations are performed. ### Health factor Health compares your liquidation-adjusted collateral value with your current debt. * **Above 100%:** not currently eligible for liquidation * **At or below 100%:** eligible for liquidation * **Higher is safer:** a health factor of 160% has more room than 110% Health changes whenever the collateral price or your debt changes, and when stability fees are accumulating. ### Liquidation price The liquidation price is the estimated stock price at which your health factor reaches 100%, assuming the position and risk parameters do not otherwise change. Treat it as a warning line, not a target. Stock prices can gap across the liquidation price, especially after earnings, during halts, or when markets reopen. ## A Safer Borrowing Example Assume a market has a 70% maximum borrow LTV and a 80% liquidation threshold. | Position | Amount | | ----------------------- | --------: | | Collateral value | $1,000 | | Maximum protocol borrow | 700 leUSD | | Example user borrow | 300 leUSD | | Starting LTV | 30% | Borrowing 300 oUSD instead of the 700 oUSD maximum leaves more room for price volatility and accrued fees. It does not remove liquidation risk. ## What Borrowing Costs Borrowers pay a stability fee on outstanding oUSD debt. The configured default is 1.50% APR, and the live rate is shown in the app. At a 1.50% rate, a constant 1,000 oUSD debt would accrue approximately 15 oUSD over one year. Actual fees depend on the amount owed, time elapsed, parameter changes, and repayments. There is no separate fee for depositing, repaying, or withdrawing, apart from network gas. ## Repaying oUSD You can repay part or all of a position: 1. Open the market containing your debt. 2. Choose **Repay.** 3. Enter the amount of oUSD to repay. 4. Approve oUSD if required and confirm the repayment. Repayment is applied to accrued fees first and principal second. Full repayment may require slightly more than the principal originally borrowed because fees continue to accrue. ## Withdrawing Collateral Choose **Withdraw** after selecting your market. A withdrawal succeeds only if the remaining collateral continues to support the remaining debt under the market's borrow limit. If you want to withdraw all collateral, repay the full debt first. ## How to Protect a Position If your health is falling, you can: * repay some oUSD * deposit more of the same collateral * avoid withdrawing collateral * keep extra oUSD available for a fast repayment * monitor the position before earnings, weekends, holidays, and other periods with gap risk Do not assume you will always have time to react. Liquidations are permissioned protocol operations that may execute as soon as a position becomes eligible. --- # 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.lendsprotocol.com/borrow-against-tokenized-stocks/borrowing-leusd.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.